AMERICAN FINANCE.
RE-DISCOUNT RATE RAISED. NEW YORK, February 2. The Federal Reserve Bank has raised the re-discount rate to 4 per cent. The change is expected to have an instant effect upon the stock market, which has lately been unduly speculative. The Federal Reserve Board was regarded as definitely committed to a policy of tighter money and the other 10 Federal Reserve centres probably will follow the lead of New York, Chicago and Richmond, at all three of which the rate is now 4 per cent. NEW YORK, February 3. The stock market gave an impressive demonstration of its inherent strength in recovering part of the heavy losses on the opening dealings which were made as a result of the rise of the re-discount rate. Some pressure was apparent toward the close, due to nervousness over a report of excessive brokerage loans. Sterling dropped sharply on the theory that the higher bank rate would attract funds from London, but recovered, closing at ?}.B6 s/ s.
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Auckland Star, Volume LIX, Issue 30, 6 February 1928, Page 4
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165AMERICAN FINANCE. Auckland Star, Volume LIX, Issue 30, 6 February 1928, Page 4
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