Discount rate:The Federal Reserve Board acquiesced a report to the congress on February 2002 that was describing the way the economy was deteriorating of the economy from 2001. Monetary policies established by Fed aimed at counteracting the slowing economy through lowering the interest rates in the federal funds through overnight loans between banks and at a discounted window made by the Federal Reserve banks to depository institutions.
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Discount rate changes the way banks and other financial institutions accessed loans in a short period federal fund rate cut to lower the cumulative rate to three percent.
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