Stocks ease higher after Fed reduces emergency lending

February 20, 2010

NEW YORK - The stock market ended a strong week with modest gains after investors found good news in the Federal Reserve's decision to begin dismantling emergency lending measures for banks. Stocks initially fell in response to the Fed's announcement late Thursday that it is raising the rate it charges banks for emergency loans, known as the discount rate. Stocks turned higher in late-morning trading as investors saw the Fed's move as a vote of confidence that the financial system was recovering and that banks didn't need as much support. The Dow Jones industrial average edged up only 9 points but recorded its best week in more than three months.

- Associated Press

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