In 1930 the Fed Raised Rates from 6% to 2.5%
July 21, 2011 at 10:08 AM EDT
No, that’s not a typo. In October 1929 the discount rate was 6%, and by October 1930 the discount rate was 2.5%. So how can I say the Fed raised rates? Because interest rates are the price of credit, determined in the market for credit. And free market forces depressed the interest rate even more [...]