Fed cuts discount rate, announces new steps

WASHINGTON Sun Mar 16, 2008 7:57pm EDT

WASHINGTON (Reuters) - The U.S. Federal Reserve on Sunday lowered the discount rate it charges on direct loans to banks and announced a new facility through it which will lend to other big financial firms.

In a surprise statement, the central bank said it cut the discount rate to 3.25 percent, effective immediately. It also said it was setting up a new lending program under which so-called primary dealers could borrow directly from the Fed at that same rate.

(Reporting by Mark Felsenthal)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.