Federal Funds Rate
The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. Investopedia Says:
This is what news reports are referring to when they talk about the Fed changing interest rates. In fact, the FOMC sets a target for this rate, but not the actual rate itself (because it is determined by the open market). Related Terms:
Ben Bernanke
Discount Rate
Discount Window
Fed Model
Federal Reserve Bank
Federal Reserve Board - FRB
Federal Reserve Open Market Committee (FOMC)
Federal Reserve System
Open Market Operations
Prime Rate
Reserve Requirements |