Federal slashes bank discount rate

Thebullishtrends: By acting quickly US Federal Bank cut its discount rate on Sunday by a quarter percentage point to 3.25% and offered to lend money to a longer list of firms than ever before. The Federal open market committee meets on Tuesday. Analysts expects that FOMC to cut the target for the federal funds rate by as much as full percentage point to 2 %. Another cut in the discount rate is also likely. The new lending programme would operate for at least 6 months, and would offer loans as long as 90 days rather than 30 days. under the regular discount window.