Remember one other thing, too. The 'discount window' is not used very much on an ordinary day. Why? Because it is known to the market that it is usually the lender of last resort, and banks using it take an immediate hit to their credibility. ''Wow, nobody else will lend you funds...etc, etc.''
all market rates -everything in the market- will be affected by the Fed’s policy because that’s where all the money comes from. Fed policy is not market based and you’re going to have these problems as a result.