Federal Reserve (Fed) Sunday suddenly announced that lowered the rediscount 0.25 to 3.25% and announced that the new lending mechanism to "improve primary dealers to provide financing to securities market participants ' capabilities".
The Fed has lowered the rediscount rate for the dollar once again pessimistic Outlook. Obviously, this is not only the United States the official continuation of the weak dollar policy, also notice a Fed rate cut this week will significantly, this decision will undoubtedly were originally weak dollar added, continue to face significant risk adjustment, and did not rule out the possibility that investors will be massive panic USD, dollar will face a deeper crisis.
New lending mechanism will rediscount interest charges. Now, the discount rate is higher than the federal funds rate 3% 0.25 percentage points.
Fed will also be expanded to accept as loans guaranteed debt types, and that the various investment grade debt securities are available for loan collateral.
Fed statement pointed out that this is to "actively market liquidity and market functioning. "The new facility will since 17 March (Mon), the loan of a maximum period will extend from 30 days to 90 days.
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