Go greenback go! The dollar is spiking like crazy right now, and according to ForexLive, the rumour among currency traders is another Fed hike to the discount rate.
The discount is a penalty rate, now at 0.50%, above the market rate for Fed funds. It is for banks that are shut-out of the Fed funds market due to credit concerns. In normal times, it is little used. The Fed may be trying to make it even less used than it is at the moment.
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