discount rate -- The interest rate the Federal Reserve System charges on a loan that it makes to a bank. Such loans, when allowed, enable a bank to meet its reserve requirements without reducing its loans.
another definition...
Discount rate -- The interest rate paid by commercial banks to borrow funds from Federal Reserve Banks.
another definition...
discount rate -- the interest rate charged by the Federal Reserve Banks on loans to their member banks.
Sarah Chen is a Certified Financial Analyst (CFA) and Certified Financial Planner (CFP) with over 15 years of experience in wealth management, retirement planning, and investment strategy. She holds an MBA in Finance from Wharton School of Business and has helped thousands of clients achieve their financial goals. Sarah is passionate about financial education and believes that everyone deserves access to clear, actionable financial guidance.