Fed raises discount rate

The Financial Times reports:

The Federal Reserve on Thursday announced it would raise the discount rate at which commercial banks borrow from the central bank as part of moves to withdraw emergency support to the financial system.

The discount rate will be increased on Friday from 0.5 per cent to 0.75 per cent, moving the spread over the main federal funds rate to a more normal level. The length of loans will also be shortened to a maximum of overnight.

Here's the Fed statement.