Seems the fed now has some current evidence of how the discount rate can ‘cap’ year end funding costs for member banks if they remove the ‘stigma’ as recommended.

Lending at the discount window jumped to $2.15 billion on Dec. 5, the largest since September. It was the first period that covered the year-end and rates at the discount window were lower compared with the market, which may have led to increased borrowing.

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