Since the late 1970s,the Federal Discount Rate has generally exceeded the Prime Interest Rate by a few percentage points.

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The Federal Discount Rate has typically been below the Prime Interest Rate, not above it, since the late 1970s. The Federal Reserve uses the Discount Rate to discourage banks from borrowing too much money, while the Prime Interest Rate is the rate at which banks lend to their most creditworthy customers, such as corporations and individuals with high credit scores.

Since the Late 1970s,the Federal Discount Rate Has Generally Exceeded