US secondary credit discount window interest rate
US secondary credit discount window interest rate stood at 4.5% on Oct 16, 2026, according to FRED (Federal Reserve Bank of St. Louis). It is one of the indicators in the Market interest rates table (Value · Daily), with a complete series running from Jan 9, 2003 to Oct 16, 2026. The complete series with an interactive chart, free to download.
This indicator in the Market interest rates table
| Indicator | 16-10-2026 | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 09-10-2026 | 08-10-2026 | 07-10-2026 | 06-10-2026 | 05-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Discount window interest rate (secondary credit) | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | 4.5 | |
| Aaa corporate bonds yield | 6.05 | 6.15 | 6.17 | 6.22 | 6.25 | 6.26 | 6.26 | 6.3 | |||
| Baa corporate bonds yield | 6.54 | 6.63 | 6.67 | 6.69 | 6.7 | 6.74 | 6.73 | 6.77 |
Understanding US secondary credit discount window interest rate
Secondary credit is the interest rate on short-term liquidity assistance for depository institutions that do not meet primary credit standards. Loans remain subject to conditions, collateral, and rigorous review; this is not a measure of prevalent borrowing costs in the economy. The clearest distinction from primary credit lies in the borrower profile and level of supervision, which is why secondary credit interest rates typically incorporate a spread reflecting higher risk.
An increase in this rate should not be viewed as standalone evidence that financial stress has erupted. The series represents the listed price of a support facility, whereas the degree of stress requires further verification via trading volumes, interest rate spreads, and market conditions. The most useful comparison is with primary credit at the same point in time; combining non-identical dates can create artificial gaps. Long flat periods are also a characteristic of step-set interest rates.
Frequently asked questions
- Who typically falls under the scope of secondary credit?
- These are depository institutions that do not meet the financial conditions to access primary credit.
- Is the higher interest rate a penalty?
- It can be understood as an additional price reflecting risk and stricter monitoring conditions, not an administrative penalty.
- Can this series be used to directly measure market stress?
- It should not be used in isolation; it must be cross-referenced with market interest rates and actual traded capital volumes.