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What is the Federal Reserves discount rate and does it have anything to do with the Prime Rate?

April 26, 2017discount rate Federal Prime rate Reserve

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What is the Federal Reserves discount rate and does it have anything to do with the Prime Rate?

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When a U.S. bank needs to borrow funds on a short-term basis, it usually does so via the fed funds market, borrowing from another bank at a rate controlled by the Federal Reserve called the fed funds rate.