Fed approves discount rate cut at 5 more Fed banks

WASHINGTON (Reuters) - The Federal Reserve Board said on Tuesday it approved requests from five more regional Fed banks to cut the discount rate to 2.5 percent.

The announcement follows a decision earlier in the day by the board from a request by three regional banks that cut the discount rate for direct loans to banks and broker-dealers by three quarters of a percentage point to 2.5 percent.

It was the second cut in 48 hours for the discount rate, which stood at 3.5 percent before an emergency cut by the Fed on Sunday evening.

The cut for the Fed banks in Cleveland, Chicago, Kansas City and Dallas is effective immediately. The cut for the St. Louis Fed is effective March 19. Earlier on Tuesday, the Fed approved reduction requests from Fed banks in Boston, New York and San Francisco.

(Reporting by David Lawder; Editing by Neil Stempleman)