Fed’s Jefferson: Discount Window Ready to Lend as Needed

The signal here is less about any imminent stress than about the Fed's preference for the discount window over emergency-style facilities as its first line of defense when funding markets tighten. That matters for banks weighing whether to pre-position collateral, since the stigma question has been the real barrier to usage, not the rate. Whether usage actually picks up when money market rates rise — and whether that is read as routine or as an early warning — is the open question.