Discount Window Primary Credit Rate
This dataset tracks discount window primary credit rate over time.
Latest Value
4.50
Year-over-Year Change
0.00%
Date Range
1/9/2003 - 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 News
US Housing Giant Hopes Fed Policies Boost Sagging Profits
Revitalizing S&P 500 Housing with Federal Reserve Policies The primary keyword, "Treasury Yield," has become an increasingly critical focus within the realm of the S&P 500 housing market. Current fluctuations in bond rates, particularly the 10-year bond rate, are causing waves in the already volatile US housing market. This situation is marked by a profit decline experienced by major housing giants, as economic uncertainty steers investor confidence. The Federal Reserve's policies and interest
U.S. Jobless Claims Spike, Followed By Decline, Layoffs Remain Low
U.S. Jobless Claims Spike and Decline: Insights into Labor Market Trends U.S. jobless claims recently spiked, only to decline soon after, highlighting interesting patterns in the labor market. At the heart of these shifts lies a tale of layoffs and employment dynamics that paint a picture of the U.S. economy's current state. These fluctuations in jobless claims explain broader economic metrics like the unemployment rate and employment rate. This overview offers a window into the complex interpl
US Fed rate cut depends on upcoming CPI inflation report
How the CPI Inflation Report Could Shape the Next Fed Rate Cut Decision The Consumer Price Index (CPI) inflation report plays a vital role in shaping U.S. economic policy, particularly concerning the Federal Reserve's decisions. As the primary measure of inflation for urban consumers, understanding CPI figures can steer expectations about potential rate cuts. This report influences a host of financial metrics including interest rates, US inflation, and the overall health of financial markets. A
Unpredictability of Interest Rate Direction in the United States
Navigating the Unpredictability of Interest Rates Interest rates have turned into one of the most unpredictable elements in the American financial landscape. This unpredictability stems largely from the nuanced decisions of the Federal Reserve, often referred to as the Fed, whose policies ripple through financial markets, influencing borrowing costs for everyone from ambitious entrepreneurs to families securing mortgages. The web of economic indicators, which serves as the backbone for interest
U.S. S&P 500 Stock Movements: Paramount and Apple Surge
Apple and Paramount Stocks Bolster the S&P 500: Analyzing Market Movements The S&P 500 recently experienced a boost thanks to significant stock movements from Apple and Paramount. As a key indicator of the U.S. stock market, the S&P 500's rise reflects broader economic dynamics. Notably, Apple's stock benefited from the recent iPhone 17 launch, while Paramount's corporate strategies have also captured investor attention. These developments underscore the interconnected nature of market trends,
Impact of U.S. Treasury Yields Rise After Fed Rate Cut
The Impact of a Treasury Yield Rise on the U.S. Economy After a Fed Rate Cut The current rise in the 10-year Treasury bond rate has caught the attention of economists, investors, and policymakers alike. Treasury yields, particularly the 10-year Treasury bond rate, act as a key indicator of the economic outlook in the United States. They affect interest rates, the bond market, and expectations for inflation. Understanding their fluctuations can offer insight into financial markets and help guide
Related Trends
Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
CPIAUCNS
Capacity Utilization: Total Index
TCU
Commercial and Industrial Loans, All Commercial Banks
TOTCI
Share of Foreign Born in Home Owners Loan Corporation (HOLC) Neighborhood A
RLMSHFBHOLCNA
Home Ownership Rate in Home Owners Loan Corporation (HOLC) Neighborhood C
RLMSHHORHOLCNC
Share of Foreign Born in Home Owners Loan Corporation (HOLC) Neighborhood C
RLMSHFBHOLCNC
Citation
U.S. Federal Reserve, Discount Window Primary Credit Rate [DPCREDIT], retrieved from FRED.
Last Checked: 8/1/2025