What interest rate?

It's one of those strange terms in economics that everyone uses, but doesn't actually exist . "The interest rate"-- commonly used as if it is a bodied phenomena--is actually a reference to very specific, very observable number in the economy. Some examples of "the interest rate" include: 

1) The i rate on treasury bonds (short, medium, and long term bonds)

2) Fed funds rate--> This is the rate that the Fed sets for each bank to charge each other for overnight loans. 

3) The Fed discount rate--> "offered to eligible commercial banks or other depository institutions in an attempt to reduce liquidity problems and the pressures of reserve requirements". In other words, this is the interest rate that the Fed charges if banks have to use it as a 'lender of last resort'. (http://www.investopedia.com/terms/f/federal_discount_rate.asp) 

4)Aaa or Baa Corporate bond rates-->This is the interest that corporations charge for investors to help finance their debt (the Aaa and Baa's refer to the risk of default that these corporate bonds carry by a rating agency. In this case, Moody's) 

5) LIBOR rate--> "a benchmark rate that some of the world’s leading banks charge each other for short-term loans. It stands for IntercontinentalExchange London Interbank Offered Rate and serves as the first step to calculating interest rates on various loans throughout the world". Most banks that make big loans use this as their benchmark. (http://www.investopedia.com/terms/l/libor.asp) 


There's more, but these are the most typical "interest" rates that are quoted in media outlets throughout the world. It's always good to know what people are talking about when they throw out economic terms. It can be quite an esoteric world with economists, but I think they like that. 



all for now.