|
|
Article: Fed raises 2 key rates by a full 50 basic points; Chase leads half-point increase in the prime. (Federal Reserve Board, Chase Manhattan Corp.)
- Article from:
- American Banker
- Article date:
- August 17, 1994
- Author:
CopyrightCOPYRIGHT 1994 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
The Federal Reserve Board raised interest rates again Tuesday in its attempt to cool the economy and head off inflation. Banks quickly responded by increasing their prime lending rates.
The Fed lifted the discount rate on loans to its member banks to 4%, from 3.5%, and hiked its target rate on overnight loans of bank reserves, better known as the federal funds rate, to 4.75% from 4.25%.
Within an hour, New York's Chase Manhattan Corp. led the banking industry response by raising its prime lending rate to 7.75%, from 7.25%, matching the central bank's half-point rate increase.
Not far behind in taking the same action were Norwest Corp., Citicorp, Chemical Banking ...