The interest rate that the fed charges on loans made directly to banks are called the federal discount rate.
The federal discount rate consists of domestic U.S. dollar unsecured loans by depository institutions from other depository institutions and certain other institutions, primarily government-funded businesses.
The effective federal discount rate is calculated as a volume-weighted average of overnight federal fund transactions reported in Money Market Rates FR Report 2420 Selective. The New York Fed publishes the previous business day's EFFR on the New York Fed's website at around 9:00 a.m.
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