Mar 18
Fed’s Three Part Attack: Liquidity Ahead?
On Sunday the Fed announced, first, a cut in the discount rate of 25 basis points to 3.25 percent. This allowed the Fed the flexibility to cut the funds rate 75 basis points at its regularly scheduled meeting tomorrow and still be proactive today. Second, the Fed authorized the Federal Reserve Bank of New York to create a lending facility to improve the ability of primary dealers (note this is more than the traditional bank access) to provide financing to market participants. This