In the recent past, the Federal Reserve has set the discount rate. I would say it is more likely the interest rate so that when the economy is struggling and money is hard to get ie loans, then the interest rate can be lowered by the Federal Reserve to make more more available and less costly but when the economy is heated up and the prices of commodities is up and businesses are doing well and much money is being invested, and prices of consumer goods start to rise, then the interest rate can be increased to slow down the economy.
