Question

What are the current level of the prime rate, the discount rate, and the three-month T-bill rate?

Answer 1

Prime rate

Prime rate is the lowest level of rate at which bank lend money to borrower. Current Prime rate in USA is 3% (300 basis point) above fed fund rate. current fed fund rate is approx. 1.25% to 1.50%. So current price rate in USA is approx. 4.50%.

Discount rate

Discount rate is the minimum interest rate at which bank borrow and lend to another bank (interbank rate). Current level for discount rate is USA is approx. 2.00%.

Three-month T-bill rate

Treasury bills are short term debt obligation backed by Federal reserve. Current level for three-month T-bill rate is 1.65%.