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Discount window cut -> fed funds cut, how often?
- Thread starter Daal
- Start date
It's always cut (or raised) in tandem with changes in the fed funds rate. I can't remember it ever being lowered independent of the fed funds rate.
Not old enough, apparently.
Here's the data
http://www.newyorkfed.org/markets/statistics/dlyrates/fedrate.html
The last time they cut the discount rate independently of the fed funds rate was Jan 4, 2001.
Here's the data
http://www.newyorkfed.org/markets/statistics/dlyrates/fedrate.html
The last time they cut the discount rate independently of the fed funds rate was Jan 4, 2001.
it seems FF leads the discount, in Jan '01 they dropped FF by 1/2 pt and the discount followed by 1/4 on two consequitive days, in the late 1990's there were a bunch of fed funds announcements without corresponding discount rate change, so the discount cut without FF change is unprecedented, no?
it seems FF leads the discount, in Jan '01 they dropped FF by 1/2 pt and the discount followed by 1/4 on two consequitive days, in the late 1990's there were a bunch of fed funds announcements without corresponding discount rate change, so the discount cut without FF change is unprecedented, no?