Definition
The Fed's lending desk, where banks can borrow short-term money directly from the Fed.
The story
Think of it as a backup credit line for banks. Healthy banks rarely need it, so when borrowing there jumps, it can be a sign some banks are scrambling for cash.
Why markets watch it
A spike in use can signal stress in the banking system.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms