January 24, 2008 / 10:15 PM / 10 years ago

Fed approves two more discount rate cut requests

WASHINGTON, Jan 24 (Reuters) - The Federal Reserve Board said it approved on Thursday requests from the Federal Reserve banks of Atlanta and Kansas City to cut their discount rates to 4 percent from 4.75 percent.

The action is effective immediately, the Fed said.

On Tuesday, the Fed had approved similar requests to lower the discount rate from the 10 other regional Fed banks.

The move to cut the discount rate charged on direct Fed loans to banks was made in conjunction with a decision by the rate-setting Federal Open Market Committee to cut the benchmark federal funds rate target to 3.5 percent from 4.25 percent.

The federal funds rate governs overnight lending between banks and is the Fed's main lever to influence the economy. (Reporting by Tim Ahmann; Editing by Leslie Adler)

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