For the first time in the last seven years, the Federal reserve raised the benchmark interest rate by 0.25%. Thus, the discount rate will be of 0.25-0.5%.
Basic discount rate the fed last increased in 2008, while remaining virtually unchanged in recent years.
The fed rate is the percentage rate at which us banks borrow from the Central Bank of the country. Analysts believe that the current increase shows confidence in the fed that the US economy was strong after the recession of 2008.