The Impact of High Discount Rates on the Economy

A high discount rate causes loans to be more expensive and encourages people to save more money. This could be considered ...
Seeking Alpha

DB Plan Discount Rates Are Setting New Historical Lows

How could the recent drop in discount rates affect plan sponsors? Due to declining treasury rates and tighter spreads, defined benefit (DB) plan sponsors are facing the lowest discount rates in the ...
San Francisco Fed

I find definitions of the federal funds rate stating that it can be both above and below the discount rate. Which is correct?

Great question! The correct answer depends on the time period. Since January 2003, when the Federal Reserve System implemented a “penalty” discount rate policy, the discount rate has been about 1 ...
San Francisco Fed

How low has the Federal Reserve’s Discount Rate fallen in the past? Has it ever fallen to zero?

The discount rate is the interest rate the Federal Reserve Banks set on secured overnight loans to depository institutions. The Federal Reserve Bank of New York’s discount rate was 1.00 percent from ...