What is the definition of the "key interest rate"?

Question

When they say the U.S. federal reserve is cutting a key interest rate, what is this key interest rate and where can I find the historical rates for this.

Answer 1

Discount rate
Definition 1

The rate at which member banks may borrow short term funds directly from a Federal Reserve Bank. The discount rate is one of the two interest rates set by the Fed, the other being the Federal funds rate. The Fed actually controls this rate directly, but this fact does not really help in policy implementation, since banks can also find such funds elsewhere. also called Federal Reserve Discount Rate.

http://www.investorwords.com/1478/discount_rate.html

Fed funds rate
Definition

The interest rate that banks charge each other for the use of Fed funds. It changes daily and is a sensitive indicator of general interest rate trends. The Fed funds rate is one of the two interest rates set by the Fed, the other being the discount rate. While the Fed can't directly affect this rate, it effectively controls it in the way it buys and sells Treasuries to banks. This is the rate that reaches individual investors, though the changes usually aren't felt for a period of time. also called Federal funds rate.

http://www.investorwords.com/5889/Fed_funds_rate.html

Find historical rates HERE:

http://www.federalreserve.gov/releases/h15/data.htm

Answer 2

Discount Rate Def

Answer 3

confusing thing. search from yahoo or google. it can assist!