Investment

» tjg911 - Fed Cuts Discount Rate; Bias now towards a rate cut

In response to Fed Cuts Discount Rate; Bias now towards a rate cut posted by Kirk:
Kirk,
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Would you please explain the difference between the discount rate and the fed funds rate/FOMC rate/overnight rate (I am assuming these 3 are the same thing).
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When I heard the discount rate was cut I thought that was the rate the Fed controls vis their meetings, obviously this is incorrect. I am confused, perhaps some others would also benefit from a brief explaination.
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Thanks,
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Tom

-- posted by tjg911