Federal Reserve raises discount rate

Seems like the US Central bank is making efforts to put across the message to investors that the recession may be coming to a close by raising the discount rate for borrowing banks. But there is still uncertainty and fear in the markets, that just in case the the bank withdraws stimulus measures and other global Central banks may follow suit. Dan Greenhaus, chief economic strategist at Miller Tabak & Co. in New York ellaborated on Reserve Bank's move of lifitng discount rate,: "There’s no inflation for the Fed to fight. If easy monetary policy and supportive fiscal policy have helped boost equities thus far, data such as today’s CPI argues for a continuation of supportive policies.”


The US markets have seen week long gains, which have helped build investor confidence in the economy recovering. I just hope this trend continues and global markets take cues from rising US stocks.