Interest Rates, Discount Rate for United States

INTDSRUSM193N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.25

Year-over-Year Change

0.00%

Date Range

1/1/1950 - 8/1/2021

Summary

The Discount Rate is the interest rate charged by the Federal Reserve to banks for short-term loans, a key monetary policy tool used to influence the broader economy.

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

The Discount Rate is the interest rate the Federal Reserve charges banks for short-term loans. It is one of the main policy instruments the Fed uses to manage economic conditions and influence other interest rates in the financial system.

Methodology

The Discount Rate is set by the Federal Reserve's Federal Open Market Committee (FOMC).

Historical Context

Adjustments to the Discount Rate are a signal of the Fed's monetary policy stance and can impact market interest rates, credit availability, and economic activity.

Key Facts

  • The Discount Rate has been in use since the Federal Reserve was established in 1913.
  • The Discount Rate is typically set 1% above the federal funds rate, the rate banks charge each other for overnight lending.
  • Changes in the Discount Rate are a key policy tool used by the Federal Reserve to influence economic conditions.

FAQs

Q: What does this economic trend measure?

A: The Discount Rate measures the interest rate charged by the Federal Reserve to banks for short-term loans. It is a key monetary policy tool used by the Fed.

Q: Why is this trend relevant for users or analysts?

A: The Discount Rate is a leading indicator of the Federal Reserve's monetary policy stance and can have significant impacts on broader interest rates, credit availability, and economic activity.

Q: How is this data collected or calculated?

A: The Discount Rate is set by the Federal Reserve's Federal Open Market Committee (FOMC).

Q: How is this trend used in economic policy?

A: Adjustments to the Discount Rate are a key policy tool used by the Federal Reserve to influence financial conditions and broader economic outcomes.

Q: Are there update delays or limitations?

A: The Discount Rate is updated by the Federal Reserve on an ongoing basis as needed, with no significant delays in data availability.

Related Trends

Citation

U.S. Federal Reserve, Interest Rates, Discount Rate for United States (INTDSRUSM193N), retrieved from FRED.