MagazineUnderstanding the Fed Steve GarmhausenDecember 1, 2007November 25, 2008 0 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 1 2