Sounds dodgy, but the rumor is working its way through the market.
The discount is a penalty rate, now at 0.75%, above the market rate for Fed funds which is between 0.0 and 0.25%. It is for banks that are shut-out of the Fed funds market due to credit concerns. In normal times, it is little used. The Fed may be trying to make it even less used than it is at the moment.
