the FED changed discount rates not the federal funds rate.
Federal funds rate are tied to prime rate not discount rates.
Either way it would be on 2nd mortgages, credit cards, student loans, etc.
Quote:
Originally Posted by NewToCA
For clarity, here is an explanation of Fed Discount Rate:
Federal Reserve Discount Rate
Definition
The rate at which member banks may borrow short term funds directly from a Federal Reserve Bank. The discount rate is one of the two interest rates set by the Fed, the other being the Federal funds rate. The Fed actually controls this rate directly, but this fact does not really help in policy implementation, since banks can also find such funds elsewhere. also called discount rate.
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