Borrowing from Fed at highest level since 9/11

Banks have borrowed an average of $1.2 billion a day from the Federal Reserve's discount window for the week ending 22 August.

This is the third highest weekly amount of borrowing ever.

Only in the two weeks following the 11 September terrorist attacks was the average amount of lending through the Fed's discount window higher.

Last Friday, 17 August, the Fed cut the primary credit discount rate by 50 basis points to 5.75%, which is still half a percent higher than the federal funds rate.

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