Watch The Fed On Monday

I just found this on another site. Advance Notice of a Expedited Meeting .  I wonder why they need an expedited meeting? Advance and discount rates charged by the Federal Reserve Banks, hmmm.

What is the discount rate? According to the NY Fed: "The discount rate is the interest rate that an eligible depository institution is charged to borrow funds, typically for a short period, directly from a Federal Reserve Bank. By law, the board of directors, of each Reserve Bank sets the discount rate independently every fourteen days subject to the approval of the Board of Governors. Originally, each Reserve Bank set its discount rate to reflect the banking and credit conditions in its own District. Over the years, the transition from regional credit markets to a national credit market has gradually produced a national discount rate. As a result, the Federal Reserve maintains a uniform structure of discount rates across all Reserve Banks. For more information on the discount rate, see The Federal Reserve System: Purposes and Functions on the Board of Governors' web site.

Okay, the primary rate is currently set at 0.75%. I don't see the Fed lowering this rate any further, so if it's not going down, then....but I also can't see the Fed raising the rate as this would tighten down further lending from it's banks.

Keep your eyes open on Moday at 11:30 AM.