Money | interest rates Fed Raises an Interest Rate But no change expected soon on benchmark rate By Nick McMaster Posted Feb 18, 2010 5:19 PM CST Copied In this Dec. 3, 2009 file photo, Federal Reserve Chairman Ben Bernanke waits to resume testifying on Capitol Hill in Washington, before the Senate Banking Committee. (AP Photo/Jose Luis Magana, File) The Federal Reserve raised the discount rate—the interest rate it charges banks for emergency loans—by a quarter point today. The central bank said the move, widely expected by the financial community, represented only the winding down of the extraordinary measures taken during the financial crisis to stimulate lending, and not a general tightening of credit, the Wall Street Journal reports. "Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve's lending facilities," the Fed said in a statement. The Federal Funds rate, which more directly affects commercial lending rates, remains at a targeted 0 to 0.25% level. Read These Next Minneapolis shooter had a plan—and grievances. American Taylor Townsend gets an earful after her US Open win. Belichick's girlfriend is embracing 'gold digger' idea. A pregnant 17-year-old died after a road rage shooting. Report an error