FED Discount Rate impact futures trade

Stock Market News today about The Fed discount rate 0.25% to 0.75%.Yesterday,The Fed announced raise the discount rate from 0.25% to 0.75%.  Although The Fed discount rate  is unlikely to have an immediate impact on the market it is certainly a shot across the bow for the longer-term impact on the market.  The Fed is clearly signaling that The Fed  are beginning to feel more comfortable with the recovery and believe higher rates could be warranted in the near future.S&P futures are erasing the entire day’s gains in the afterhours market because The Fed discount rate .Market pundits are likely to spin this as a positive, however, the economy remains exceedingly fragile and the end of the Fed’s extremely accommodative posturing is nothing but negative and creates substantial risk that the economy could double dip.

This entry was posted on Thursday, February 18th, 2010 at 23:27 and is filed under Daily Forex Analysis, Economy News, Market news, Stock Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.