What is the difference between the FED Discount Rate and the FED Target Rate?

Answer 1

The Fed Discount rate is the rate of interest charged to banks for short term money. The Fed provides funds for banks that exceed their liquidity margins.

The target rate is what they set as the prime rate for banks. Usually this is a tiny bit higher than the discount rate. So the Fed will loan the banks money at 5.75% and the banks will set prime at 6%.