In March 2020, the Fed dropped the discount rate from 2.25% to 0.25%, anticipating emergency cash needs for some banks going into the Covid crisis. Why might the discount window become a more important source of liquidity for banks during crises? Borrowing from the discount window carries a "glamor premium," giving banks that borrow from it a more prestigious profile. When liquidity in the financial system dries up, as during crises, the discount window may offer the only source of liquidity for some banks. The discount window generally lends at the cheapest rates available for banks. During crises, banks want to signal that they're taking responsible action to shore up their balance sheets by publicly going to the Fed's discount window