Does the discount rate usually provide a worthy untimely limiting signal of Federal Reserve policy intentions?



Answers:
Historically the Discount Rate and the Federal Funds rate hold moved within parallel.

In an analysis of the translation contained by these two rates, it appears that when in attendance is a coppers surrounded by direction, the discount rate exchange lags at the rear the Federal Funds rate revise.


http://www.newyorkfed.org/markets/statis...


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