The discount rate is the rate of interest charged by the feds on loans to banks.It is used as a tool by the feds to:

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The discount rate is used as a tool by the feds to stimulate or cool off the economy. By raising or lowering the discount rate, the feds can influence the amount of money in circulation, as well as the cost of borrowing for banks and financial institutions. A higher discount rate will make it more expensive for banks to borrow money from the feds, which can lead to higher interest rates for consumers and businesses. Conversely, a lower discount rate can encourage more borrowing and spending, which can stimulate economic growth.

The Discount Rate Is the Rate of Interest Charged by the Feds