Normally the discount rate is below the federal funds rate to encourage banks to borrow from the Fed rather than from other banks.

Name: Normally the discount rate is below the federal funds rate to encourage banks to borrow from the Fed rather than from other banks.
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The discount rate is actually higher than the federal funds rate, which encourages banks to borrow from other banks rather than from the Fed. This is meant to be a "last resort" option for banks experiencing a liquidity crisis.

Normally the Discount Rate Is Below the Federal Funds Rate