Special Focus: FED’s emergency meeting today

Watch out for FED’s emergency meeting tonight, which was suddenly and unexpected called to last week and will take place today in Washington at 11:30 am local time or 3:30 pm GMT. FOMC officials are likely to discuss on FED’s discount rates.

FED’s discount window is crucial source of funding for financial institutions, especially in time of stress. Current interest rates are as follows –

Primary credit – 1%

Secondary credit – 1.5%

Seasonal Credit – 0.45%

Last time, when FOMC hiked rates in December, these rates were adjusted 25 basis points higher.

Participants can choose to vote for hike today, however that is non-binding, meaning it will be up to the policymakers to decide on rates. But if most members votes for a rise today, then April meeting is very much alive. Details of today’s meeting will be published later on but not before April rate decision.

Last time FED held such a meeting was back in November 21st, after which it raised rates within a month.