Historical Changes of the Target Federal Funds and Discount Rates - Federal Reserve Bank of New York http://www.newyorkfed.org/markets/statistics/dlyrates/fedrate.html[3/15/2011 11:34:37 AM] MARKETS Open Market Operations Securities Lending Primary Dealers Reverse Repo Counterparties Foreign Exchange Maiden Lane Transactions Programs Archive Browse Related Publications View Markets Contacts Home > Markets Historical Changes of the Target Federal Funds and Discount Rates 1971 to present Printer version DATE DISCOUNT RATE FEDERAL FUNDS RATE CHANGE NEW LEVEL* CHANGE NEW LEVEL PRIMARY 1 SECONDARY 2 2010 Feb 19 +.25 0.75 1.25 2008 Dec 16 -.75 0.50 1.00 -1 to -.75 0.00 - 0.25 Oct 29 -.50 1.25 1.75 -.50 1.00 Oct 8 -.50 1.75 2.25 -.50 1.50 Apr 30 -.25 2.25 2.75 -.25 2.00 Mar 18 -.75 2.50 3.00 -.75 2.25 Mar 16 -.25 3.25 3.75 Jan 30 -.50 3.50 4.00 -.50 3.00 Jan 22 -.75 4.00 4.50 -.75 3.50 2007 Dec 11 -.25 4.75 5.25 -.25 4.25 Oct 31 -.25 5.00 5.50 -.25 4.50 Sep 18 -.50 5.25 5.75 -.50 4.75 Aug 17 -.50 5.75 6.25 2006 Jun 29 +.25 6.25 6.75 +.25 5.25 May 10 +.25 6.00 6.50 +.25 5.00 Mar 28 +.25 5.75 6.25 +.25 4.75 Jan 31 +.25 5.50 6.00 +.25 4.50 2005 Dec 13 +.25 5.25 5.75 +.25 4.25 Visited 03/15/2011
12
Embed
Historical Changes of the Target Federal Funds and ... · Historical Changes of the Target Federal Funds and Discount Rates - Federal Reserve Bank ... DISCOUNT RATE FEDERAL FUNDS
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Historical Changes of the Target Federal Funds and Discount Rates - Federal Reserve Bank of New York
1 Primary credit is available to generally sound depository institutions on avery short-term basis, typically overnight, at a rate above the FederalOpen Market Committee’s target rate for federal funds. Depositoryinstitutions are not required to seek alternative sources of funds beforerequesting occasional short-term advances of primary credit. The FederalReserve expects that, given the above-market pricing of primary credit,institutions will use the discount window as a backup rather than a regularsource of funding.
Primary credit may be used for any purpose including financing the sale offederal funds. By making funds readily available at the primary credit rate
Visited 03/15/2011
Historical Changes of the Target Federal Funds and Discount Rates - Federal Reserve Bank of New York
when there is a temporary shortage of liquidity in the banking system,thus capping the actual federal funds rate at or close to the primary creditrate, the primary credit program complements open market operations inthe implementation of monetary policy.
Primary credit may be extended for up to a few weeks to depositoryinstitutions in sound financial condition that cannot obtain temporary fundsin the market at reasonable terms; normally, these are small institutions.Longer-term extensions are subject to increased administration. 2 Secondary credit is available to depository institutions not eligible forprimary credit. It is extended on a very short-term basis, typicallyovernight, at a rate that is above the primary credit rate. Secondary creditis available to meet backup liquidity needs when its use is consistent witha timely return to a reliance on market sources of funding or the orderlyresolution of a troubled institution. Secondary credit may not be used tofund an expansion of the borrower’s assets. The secondary credit programentails a higher level of Reserve Bank administration and oversight thanthe primary credit program; a Reserve Bank obtains sufficient informationabout a borrower’s financial condition and reasons for borrowing to ensurethat an extension of secondary credit is consistent with the purpose of thefacility. All data are based on available records, but this Bank does notguarantee their accuracy.
Top
Home Federal Reserve System Contact Us E-mail Alerts RSS Feeds Terms of Use