Borrowing from the Federal Reserve’s emergency lending program reached a fresh record, signaling high demand just before the central bank decided to raise the facility’s interest rate. The increase in borrowing was significant, amounting to approximately $6.3 billion during the week leading up to Wednesday. This development comes as the central bank aims to prevent financial institutions from taking advantage of the program by exploiting its favorable terms through arbitrage. By increasing the interest rate, the Federal Reserve hopes to discourage such behavior and ensure fair usage of the program. The Bank Term Funding Program has been crucial in providing support to the financial system during times of crisis, but it is important to maintain its integrity and prevent undue advantage-taking. The rise in demand for the program highlights its importance in the current economic climate.