The Wall Street journal on-line has just reported the following:

“Fed Cuts Discount Rate to 5.75%, Citing Raised Economic Uncertainty”

WASHINGTON — The Federal Reserve, declaring that increased economic uncertainty poses risks for U.S. business growth, announced Friday that it has approved a half-percentage point cut in its discount rate on loans to banks.
The action was the most dramatic effort yet by the central bank to restore calm to global financial markets which have been roiled in the past week by a widening credit crisis. (Read the Fed’s statement.)
The decision means that the discount rate, the interest rate that the Fed charges to make direct loans to banks will be lowered to 5.75%, down from 6.25%.

Well this should make for an interesting end to the week. Instead of the markets opening lower in anticipation of another pounding we could see stocks rally.

As we write gold is up $13.50 and silver is up 56 cents.

Have a better one today.