Abbreviation:
Category: Economic
Input Parameters:
| Name | Range | Default |
| Fed Funds Index | ||
| Discount Rate | ||
Calculation:
Fed Funds Index – Discount Rate
Discussion:
A discount rate increase is usually a bearish sign, while a discount rate decrease is usually considered a bullish sign. Since changes in the federal funds rate are usually followed by corresponding changes in the discount rate, positive values are considered bearish, while negative values are considered bullish.