There is general agreement that the discount rate is the most effective tool at the Fed's disposal and its use in monetary policy has diminished over time.

Question

Quizplus · Accepted Answer

The Federal Reserve uses several tools for monetary policy, with the federal funds rate being considered the primary and most effective tool. The use of the discount rate has indeed diminished over time, but it is not considered the most effective tool at the Fed's disposal.

There Is General Agreement That the Discount Rate Is the Most