• How the Fed’s Discount Window Works – And How It Affects the Federal Funds Rate

    How the Fed’s Discount Window Works – And How It Affects the Federal Funds Rate

    When people think about Federal Reserve policy, they usually picture interest-rate announcements and headlines about the federal funds rate, but the Discount Window is one of the oldest and most misunderstood mechanisms the Fed uses to maintain stability, liquidity, and confidence in U.S. banking.