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John Paul Koning
Money and Banks
2007

Don’t Discount the Fed Discount Window

Mises Daily

Author: John Paul Koning

Online Publish Date: September 13, 2007

Category: The Fed, Financial Markets, Money and Banks

Though many have dismissed the Federal Reserve’s decision to drop the discount rate from 6.25% to 5.75% as mere window dressing, there are reasons to think otherwise. Citigroup, JPMorgan Chase, Bank of America and Wachovia each borrowed $500 million from the Federal Reserve discount window last week. Average end-of-day Fed credit outstanding for

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