DislikedFED's current interest rate is 0.25%, which basically means you will get 0.25% interest annually for holding your savings in the bank. So basically this is the interest you GET. This is set by the FED, not by the free markets. US 10 year treasury yield (US10Y) is currently 1.87% which means you will at least pay 1.87% interest for your loans (at least 1.87%, you will likely to pay more than that) and this is the interest that you PAY. This is set by the free markets and changes everyday. If the FED hikes that 0.25% interest rate and it will, this...Ignored
The impact of the discount rate on other rates is what makes it so important and not to be ignored.
Compulsions can be hard to resist
1