The Federal Reserve has taken an intermediate step, cutting its discount rate to 5.75% from 6.25%, in order to “to promote the restoration of orderly conditions in financial markets.” Basically, it’s the closest possible thing to an actual cut in the federal-funds target rate without actually cutting that rate, and as such, some see it as more symbolic than anything else — after all, the discount rate is still a penalty rate, higher than the federal-funds rate. [...]
The discount rate is the Fed’s rate on loans to banks, whereas the federal-funds rate is the rate on overnight loans from one bank to another. [...]
Fed Funds Rate to be ON or OVER 5.00% on Year End 2007
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BetFair – FOMC – September FOMC -
What will be the change in US Federal Funds Rate at this months scheduled Federal Open Market Committee (FOMC) meeting? Any changes made in an unscheduled meeting do not count for market purposes. Current Rate 5.25% .
