WASHINGTON, Dec 16 (Reuters) - The U.S. Federal Reserve on Tuesday said that the directors of the Kansas City and Chicago Federal Reserve banks had requested an immediate cut in their discount rate to 0.50 percent from 1.25 percent.
The Fed said in a statement that the Federal Reserve Bank of St Louis had also asked for a matching reduction, effective from Wednesday, Dec. 17.
The discount rate is the rate that the Fed charges commercial banks to borrow from its discount window.
The moves follow requests from six other regional Federal Reserves for a 75 basis point reduction in the discount rate announced at the Fed's policy-setting meeting on Tuesday.
At the meeting, the U.S. central bank cut its benchmark overnight funds rate target to between zero and 0.25 percent from 1 percent.
(Reporting by Alister Bull; Editing by Gary Crosse)
((e-mail: alister.bull@reuters.com; +1-202-354-5820)) Keywords: USA FED/DISCOUNT (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Fed said in a statement that the Federal Reserve Bank of St Louis had also asked for a matching reduction, effective from Wednesday, Dec. 17.
The discount rate is the rate that the Fed charges commercial banks to borrow from its discount window.
The moves follow requests from six other regional Federal Reserves for a 75 basis point reduction in the discount rate announced at the Fed's policy-setting meeting on Tuesday.
At the meeting, the U.S. central bank cut its benchmark overnight funds rate target to between zero and 0.25 percent from 1 percent.
(Reporting by Alister Bull; Editing by Gary Crosse)
((e-mail: alister.bull@reuters.com; +1-202-354-5820)) Keywords: USA FED/DISCOUNT (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.