Economic outlook: Fed rise’s recovery signal

This article states that the Fed decided to raise the discount rate before the expected time. Seeing that the discount rate has increased came for a surprise to some, but also shows a very good sign in recovery within the financial system. The discount rates are expected to continue in the next couple of months seeing that policy makers are beginning to let go of the excess liquidity from the financial system. Bernake will take this to congress this upcoming week to explain that this will not change the monetary policy for the US economy. With an increase in the discount rate, this shows another sign of life for the US economy in its voyage to economic stabilization.