When the Fed reduces the discount rate, this sends a signal to banks that the Fed wants:

Name: When the Fed reduces the discount rate, this sends a signal to banks that the Fed wants:
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When the Fed reduces the discount rate, it lowers the cost for banks to borrow money from the Federal Reserve, encouraging them to increase lending. This action is intended to expand the money supply by making more funds available for banks to lend to businesses and consumers.

When the Fed Reduces the Discount Rate, This Sends a Signal