Discount hike was to discourage reliance on Fed: Bernanke

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Ben Bernanke, the central bank's chairman, has said the discount rate hike last Thursday was made to wean banks of federal support and in no way heralded rate hikes.

In testimony on Wednesday accompanying the Federal Reserve's Semiannual Monetary Policy Report to the Congress, Bernanke said the 25 basis point hike to the primary credit rate, or discount rate as it is informally known, was designed to "discourage banks from relying on the discount window rather than private funding markets for sh

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