As the Federal Reserve surprisingly adjusted the discount rate from 0.5% to 0.75% on the
night of Thursday, February 18, State Street opened sharply higher on Friday morning since, as a
trust bank, it can begin lending at a higher rate when banks will begin borrowing from private
markets. This move in State State’s share price enabled State Street to break through its recent
resistance [7]. We thus expect the price remain on the new level and hopefully begin an
uptrend in the short term.