Word: rediscount
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...days of insistent questioning in Washington last week, Texas Congressman Wright Patman, chairman of the House Small Business Committee, tried his hardest to discover what every U.S. businessman would dearly like to know: What will the Federal Reserve Board do next to ease credit and implement its reduction in rediscount rates...
Tough Medicine. To tighten money, Finance Minister Ichimada asked Japan's central bank to 1) hike its rediscount rate from 7.3% to 8.4%, 2) tighten up reserves of commercial banks to make loans harder to get, and 3) raise deposit requirements on import licenses from 5% to 35% of the shipment's total value, thus immediately tying up an estimated $40 million worth of importers' funds. As a result, imports dropped an average $25 million monthly, were actually slightly behind currency-earning exports for the month of October. Moreover, inflation at home lost some of its steam...
...Rate? As interest rates rose, Wall Street wondered whether the Federal Reserve System would raise its 3% rediscount rate, which for some time has been less than the short-term borrowing rate the Treasury pays. Ordinarily the Fed raises the rediscount rate to prevent "riding the rate," i.e., a member bank borrowing from the Fed to have more funds for lending at a higher rate. But member-bank borrowing last week averaged $888 million, up only $5,000,000 from the week before. Since there was no evidence that banks were riding the rate, best guess was that...
...event, many builders feel that the Government's entire mortgage program should be overhauled. Among the ideas proposed: 1) a central mortgage bank created by the Government, which would operate much as the Federal Reserve does for commercial banking by making rediscount loans to regulate the fluctuating supply of credit; 2) a boost in the buying power of Fannie Mae, the Government's secondary mortgage-buying agency, from the current $1.1 billion to $4.5 billion; 3) more direct loans from VA to home buyers...
...points off the peak last April. The tip-off to Wall Street was the U.S. Treasury's action: it had to offer an interest rate of 3.043% to sell $1.6 billion worth of 90-day bills, a rate slightly higher than the Federal Reserve's 3% rediscount rate. Traditionally, when the Treasury rate climbs above the rediscount rate, it means another rediscount boost by the Federal Reserve. In fact, had it not been for possible upsets to business threatened by the Middle East crisis, most economists thought that money would have already been tightened...