{"id":669657,"date":"2010-02-19T09:28:51","date_gmt":"2010-02-19T14:28:51","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/02\/19\/dudley-calls-discount-rate-change-technical\/"},"modified":"2010-02-19T09:28:51","modified_gmt":"2010-02-19T14:28:51","slug":"dudley-calls-discount-rate-change-%e2%80%98technical%e2%80%99","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/669657","title":{"rendered":"Dudley Calls Discount-Rate Change \u2018Technical\u2019"},"content":{"rendered":"

Federal Reserve Bank of New York President William Dudley said Friday the increase in the discount rate done by the central bank late Thursday was “technical” in nature.<\/p>\n

“We made a very small technical change” by raising the discount rate, Dudley said. “The action yesterday was really an action about the improvement in banks,” and reflected the fact these institutions no longer need this emergency source of cheap funding the way they did during the depths of the financial crisis, the official said.<\/p>\n

The discount rate increase “is not at all a signal of any imminent tightening” in monetary policy, and the Fed’s commitment to keep rates very low for an extended period “is still very much in place,” Dudley said.<\/p>\n

The central banker’s comments came in response to audience questions followed a speech he gave before the Center for the New Economy 2010 Economic Conference, in San Juan, Puerto Rico. He is the vice chairman of the interest-rate setting Federal Open Market Committee.<\/p>\n

Dudley’s speech comes a day after the Federal Reserve boosted modestly its discount rate, which determines the cost of emergency loans made to deposit taking banks.<\/p>\n

The action was largely symbolic in the view of economists and central bankers had suggested in advance the move was coming, framing it as a further normalization of policy.<\/p>\n

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Federal Reserve Bank of New York President William Dudley said Friday the increase in the discount rate done by the central bank late Thursday was “technical” in nature. “We made a very small technical change” by raising the discount rate, Dudley said. “The action yesterday was really an action about the improvement in banks,” and […]<\/p>\n","protected":false},"author":788,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-669657","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-2OcV","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/669657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/788"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=669657"}],"version-history":[{"count":0,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/669657\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=669657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=669657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=669657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}