Increase in discount rate.The Federal Reserve Board Federal Reserve Board (FRB) The seven-member governing body of the Federal Reserve System, which is responsible for setting reserve requirements, and the discount rate, and making other key economic decisions. approved on September 20, 2005, an action by the Board of Directors of the Federal Reserve Bank Federal Reserve Bank The banks that carry out Fed operations, including controlling the money supply and regulating member banks. There are 12 District Feds, headquartered in Boston, New York, Philadelphia, Cleveland, St. Louis, San Francisco, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, and Dallas.Notes: These banks are the operating arms of the central bank. of San Francisco, increasing the discount rate Discount Rate 1. The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank.2. The interest rate used in determining the present value of future cash flows. Notes: 1. This type of borrowing from the Fed is fairly limited. Institutions will often seek other means of meeting short-term liquidity needs. at the Bank from 4 1/2 percent to 4 3/4 percent. The Board also approved an action by the Board of Directors of the Federal Reserve Bank of St. Louis, increasing the discount rate at the Bank from 4 1/2 percent to 4 3/4 percent, effective September 21, 2005. On September 22, 2005, the Federal Reserve Board approved actions by the Boards of Directors of the Federal Reserve Banks of Cleveland, Atlanta, and Dallas, increasing the discount rate at the Banks from 4 1/2 percent to 4 3/4 percent. |
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