Fed Raises Discount Rate

[Buster]

Thanks Tom..

 

[tsptalk]

The prime rate is based on the fed funds rate. However, when the fed changes the discount rate, historically a fed funds rate change is not far behind.

 

[Buster]

Pardon my ignorance on this subject..But does this affect the prime rate?

 

[SkyPilot]

How might this effect the LIBOR, specifically the 1-month LIBOR?

 

[Show-me]

Japan falls almost 2% after the Fed announcement of higher rates.

Tomorrow could be bloody for US stocks.

And, it is bank failure Friday!!!

 

[James48843]

Japan falls almost 2% after the Fed announcement of higher rates.

Tomorrow could be bloody for US stocks.

 

[Bullitt]

China and India started the ball rolling, it's only fit for the US to follow. More reason to be bearish in 2010.

 

[nnuut]

And this:
After Hours
Feb. 18, 2010, 5:29 p.m. EST · Banking stocks fall as Fed hikes discount rate

By Carla Mozee, MarketWatch

LOS ANGELES (MarketWatch) -- Banking stocks and some exchange-traded funds slumped Thursday evening after the U.S. Federal Reserve said it's raising its discount rate in a move to get banks to borrow from the private market.
Among late-session volume movers, Citigroup Inc. /quotes/comstock/13*!c/quotes/nls/c (C 3.38, -0.05, -1.46%) fell 1.8% to $3.38, Bank of America Corp. /quotes/comstock/13*!bac/quotes/nls/bac (BAC 15.66, -0.22, -1.39%) lost 1.2% to $15.69 and J.P. Morgan Chase & Co. /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 39.95, -0.46, -1.14%) gave up 1% to trade at $40.
[more]
http://www.marketwatch.com/story/dell-cbs-intuit-on-late-trading-deck-2010-02-18

 

[coolhand]

I had just posted a link to futures in frixxx's account when I got this.

http://www.nytimes.com/2010/02/19/business/19fed.html

Then I noticed Tom beat me to it. You're quick!

 

[nnuut]

Dollar is spiking, up to 81.001 http://quotes.ino.com/chart/?s=NYBOT_DX&v=s

 

[350zCommTech]

Understood. But I think most were "expecting" it during the next Fed meeting. Doing it before an OPEX friday? Maybe the bond ETF guys expected it, I dunno?

You may be right. The futures are reacting negatively in both equities and bonds.

It's making the futures wiggle!

DJIA-----------42.00
S&P 500-------5.80
NASDAQ 100 -8.75
http://www.bloomberg.com/markets/stocks/futures.html

Somebody knew about this. The pump we saw this morning might have been cover. GS must have gone short. The Feds normally tries to screw the shorts, not the long. I agree with minnow.

http://www.tsptalk.com/mb/showpost.php?p=257275&postcount=4049

 

[nnuut]

I believe that investors know that this is the beginning and what futher moves will mean to the Markets, an over reaction that will calm down quickly. FOR NOW!

 

[nnuut]

It's making the futures wiggle!

DJIA-----------42.00
S&P 500-------5.80
NASDAQ 100 -8.75
http://www.bloomberg.com/markets/stocks/futures.html

 

[tsptalk]

You may be right. The futures are reacting negatively in both equities and bonds.

 

[Minnow]

I think this was expected. This isn't the Fed funds rate.

Understood. But I think most were "expecting" it during the next Fed meeting. Doing it before an OPEX friday? Maybe the bond ETF guys expected it, I dunno?

 

[tsptalk]

I think this was expected. This isn't the Fed funds rate.

 

[Minnow]

WOW! Right in front of OPEX? I only got a little toe in the market and even I think that is ... hmmm... not nice.

 

[tsptalk]

more ... http://www.marketwatch.com/story/fe...says-not-tightening-2010-02-18?dist=afterbell

 

[tsptalk]

The Fed just raised the discount rate from 0.50% to 0.75%.