Understanding the Fed

on economic conditions in its 12 regions, issued eight times annually

Discount Rate: The interest rate at which the Fed lends money to commercial banks

Federal Funds Rate: The interest rate banks charge each other for overnight loans; it influences broader interest rates

Federal Open Market Committee: The 12-member Fed committee with the power to adjust the federal funds rate and the federal discount rate

For more information, visit www.federalreserve.gov