Borrowing from Fed's discount window sends mixed signals

Over the past week, commercial banks increased the amount of money they borrowed from the Federal Reserve's discount window, indicating the credit crunch is continuing. "Banks are either getting less shy about using the discount window or are having a greater degree of stress, or possibly some combination of the two," said Michael Feroli, an economist at JPMorgan Chase. Meanwhile, investment banks significantly reduced their borrowings, which may be a sign of that credit woes are easing in that sector.

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