Word: discounters
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Dates: during 1960-1969
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...risks that were worrying Okun-inflation at home and a threatened dollar abroad-last week prompted the Federal Reserve Board to give the nation its third dose in five months of some painful economic medicine: higher interest rates. The Reserve Board voted unanimously to raise its discount rate from 5% to 51%. That increase in the amount the Fed's district banks charge for borrowed funds applied initially to loans to member banks from the Federal Reserve banks of New York, Philadelphia and Minneapolis. The other nine reserve banks were expected to take similar action quickly...
...first result of the 51% discount rate, highest since the 6% rate posted by the New York Reserve Bank for three months in 1929, was a rush by commercial banks to lift their minimum lending rate from 6% to a record 61% annual interest. That "prime rate," as bankers call it, applies to borrowing by their bluest-chip corporate customers. Other interest rates throughout the economy scale upward from that level. Bankers predicted that loans will now grow costly enough to crimp small businessmen, capital-goods industries and local government construction projects. Worst hit, as usual, will be new housing...
...firm out of components and into the consumer market; of a heart attack; in Manhattan. Whether it was tubes and resistors or TV sets and stereo consoles, Freimann was a bug about bugs: either make it right or not at all. Nor did he join the postwar race to discount, sold only at a fixed price-and made it stick so successfully that sales last year topped the $400 million mark...
...highest rates since the Civil War - 6.45% - to float $730 million in bonds (see BUSINESS). Double-A corporate bonds market for as much as 6.8%, twice as high as in 1955. On a $40,000 mortgage in Washington, D.C., the tag is 6.5%, plus a "discount" charge of two interest points ($800); in Los Angeles, it is 7% plus 1.5 points...
...direct result of the gold emergency, the Federal Reserve Board has already raised the discount rate-the interest that Federal Reserve banks charge member banks to borrow money-from 4½% to 5%. That increase will make loans less avail able-and more expensive. Very shortly, people seeking a bank loan for a car, a trip or a color TV set will probably find that it is costing them more in interest than it would have last week; those with less than gilt-edged credit ratings may find it impossible to borrow from a bank. The same principle applies...