Discount Window Primary Credit Rate
DPCREDIT • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.50
Year-over-Year Change
0.00%
Date Range
10/6/2021 - 8/5/2025
Summary
The Discount Window Primary Credit Rate represents the interest rate charged by Federal Reserve Banks to financial institutions for short-term lending. This rate serves as a critical indicator of central bank monetary policy and banking system liquidity.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This rate reflects the Federal Reserve's base lending rate for financially sound institutions seeking emergency or supplemental funding. Economists closely monitor it as a barometer of banking system stress and potential monetary intervention.
Methodology
The rate is set by Federal Reserve district banks and adjusted periodically based on current economic conditions and monetary policy objectives.
Historical Context
Policymakers and financial analysts use this rate to assess banking system health, potential credit market tensions, and broader monetary policy stance.
Key Facts
- Represents the Fed's primary short-term lending rate to banks
- Updated regularly to reflect current economic conditions
- Serves as a key monetary policy transmission mechanism
FAQs
Q: What is the primary purpose of the Discount Window Primary Credit Rate?
A: The rate provides a mechanism for financially sound banks to access short-term funding from Federal Reserve Banks. It helps maintain banking system liquidity and stability.
Q: How does this rate differ from the federal funds rate?
A: While related, the Discount Window rate is specifically for direct bank borrowing from the Fed, whereas the federal funds rate governs interbank lending.
Q: How often is the Discount Window Primary Credit Rate updated?
A: The rate can be adjusted periodically, typically in response to significant changes in economic conditions or monetary policy objectives.
Q: What happens if a bank uses the Discount Window?
A: Banks can borrow funds to meet short-term liquidity needs, typically at a slightly higher rate than market rates to discourage excessive reliance.
Q: Are there limitations on Discount Window borrowing?
A: Banks must be in generally sound financial condition and borrowing is typically short-term and meant to address temporary funding needs.
Related Trends
Citation
U.S. Federal Reserve, Discount Window Primary Credit Rate [DPCREDIT], retrieved from FRED.
Last Checked: 8/1/2025