Rumor of Discount Rate Hike

ZeroHedge is reporting that a  rumor is circulating that the Fed is about to hike the discount rate, again. They just hiked it last month. The discount rate is not particularly relevant, given there is very little that goes on at the discount window, but a second hike would send a signal that the Fed wishes it actually had the balls to raise the rate  that matters, i.e. the IOER.

Here's FT on  the rumor:

Traders say the Euro’s move lower was linked to speculation the Federal Reserve is about to raise the discount rate again.

This would be slightly surprising coming so soon after the FOMC meeting, but US 3-month Libor did fix at 0.27 per cent today – the highest level since November.

And remember, some people reckoned the previous increase leaked.

The Federal Reserve, meanwhile, is saying nothing.

FEDERAL RESERVE SPOKESPERSON SAYS FED DOES NOT COMMENT ON RUMORS