The Federal Reserve has, historically, used the discount rate as a tool to ‘test’ market reactions to monetary policy. We are in extremely volatile markets, and raising the discount rate allows the Fed to observe the reaction their actions will have once they are reflected in the core ‘Funds Rate’.
Not specified — The Federal Reserve has, historically, used the discount rat
The Federal Reserve has, historically, used the discount rate as a tool to ‘test’ market reactions to monetary policy. We are in extremely volatile markets, and raising the discount rate allows the Fed to observe the reaction their actions will…