fed funds rate investment & finance definition
The interest rate that the U.S. central bank, the Federal Reserve (Fed), charges on overnight loans between banks.
Fed funds - some related terms:
Federal Reserve Board
Clearing House Funds
Clearinghouse funds
Money market instruments ...
Fed funds sold for a period of time longer than overnight.
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Fed Funds
Cash balances held by banks with their local Federal Reserve Bank. The normal transaction with these fund is an inter bank sale of a Fed fund deposit for one business day.
Fed Funds Market Interbank market for borrowing and lending deposits held by commercial banks in the U.S. that are member banks at theFederal Reserve.
Fed Funds Rate
The Fed Funds Rate is the interest rate at which banks make overnight loans to eachother.
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Fed Funds effective rate
The overnight rate at which banks lend funds to each other, usually as unsecured loans from regional banks to money center banks. The Fed Funds rate is the average dollar-weighted rate of overnight funds.
Fed Funds: This is the rate of interest that banks charge each other for funds that are immediately available at the Federal Reserve. The Fed targets the Fed Funds rate as a tool in its monetary policy.
Fed Funds Rate
Fed funds rate is the interbank borrowing rate that banks charge each other for overnight loans. The fed funds rate is also an important indicator of Federal Reserve monetary policy and the future direction of other interest rates.
Term Fed funds
Fed funds sold for a period of time longer than overnight.
Term insurance
Provides a death benefit only, no build up of cash value.
Forward Fed funds
Fed funds traded for future delivery.
Forward foreign exchange contract
Agreement that obligates an investor to deliver a specified quantity of one currency in return for a specified amount of another currency.
2) Fed funds curve strategy This strategy takes a view on the shape of the curve based on the actions of the Fed. In this strategy, one puts on a steepener or flattener, based on whether the Federal Reserve has cut the benchmark rate or raised it.
Talks of a Fed funds rate hike, which signals the possibility of higher returns on US assets, encourage traders to buy up the USD. Well, don't get left behind! ...
Federal funds (Fed funds). Immediately available reserve balances at the federal reserves. The Fed funds are widely used by commercial banks or large corporations to lend to each other on an overnight basis.
fed funds Funds deposited by commercial banks at Federal Reserve Banks. By requiring banks... Fed funds rate Federal Funds Rate (or Fed Funds Rate) - the interest rate banks charge...
Fed Funds : Cash balances held by banks with their local Federal Reserve ... Federal Reserve Board : The board of the Federal Reserve System, appointe... Fill Price : The price at which a buy or sell order was executed.
Fed Fund Rate : The interest rate on Fed funds. This is a closely watched short ter...
Fed Funds : Cash balances held by banks with their local Federal Reserve Bank. The ...
Federal Deposit Insurance Corporation : Abbreviated FDIC.
Also called fed funds. Federal funds rate
The interest rate on overnight loans of excess reserves made among commercial banks.
TREASURY BONDS US H,M,U,Z 10-YR TREASURY NOTES TY H,M,U,Z 5-YR TREASURY NOTES FV H,M,U,Z 2-YR TREASURY NOTES TU H,M,U,Z 30-DAY FED FUNDS FF ALL MONTHS DOW JONES INDUSTRIAL DJ H, M, U, Z LONG-TERM MUNICIPAL BOND MB H,M,U,Z GERMAN BOND (BUND) BU H,M,U, ...
Fed Funds
Federal Deposit Insurance Corporation (FDIC)
Federal Funds Rate
Federal Housing Administration (FHA)
Federal National Mortgage Association
Federal Reserve Board
Feed Ratio
Felony
Fictitious Trading
Fiduciary Duty ...
Banks hold no more than they are legally required to do, and with any and all cash surplus then lent to other Banks in times of need, usually underneath the Fed Funds rate (Discount Window), it puts additional and unwanted pressure on the system.
- Interest Rates - Interest rates, especially short-term benchmark rates like the Fed Funds Rate, are a key element in evaluating one currency against another.
This is the mechanism that influences the Fed Funds Rate. The Fed Funds Rate is the rate that banks will charge each other for intra-day and overnight loans.
Fed is taking the risk out of the market but it will come back - G'span may trigger an inverted yield curve // most folks see 3% Fed Funds by June, 3.5% by year end -- 10 yr is under 4.
The most common of the interest rate trades includes treasury bonds, fed funds, and municipal bonds. When trading in the interest rate market, the investor is attempting to capitalize on the long and short term changes in the yield curve.
Fed Fund Rate - The interest rate on Fed funds. This is a closely watched short term interest rate as it signals the Fed's view as to the state of the money supply.
Fed - The central bank of the United States, responsible for monetary policy.
However, the Federal Reserve shows few signs of ending its pause in raising interest rates, and Fed funds futures are starting to factor in the possibility of rate cuts in 2007.
The Fed funds rate, as it is called, often points to the direction of US interest rates. The most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate.
Federal Funds Rate
The interest rate that banks charge each other for the use of Fed funds. The Feds control this rate indirectly through setting the yield of Treasury security issues.
Financial Futures - Futures contracts based on financial instruments such as U.S. Treasury Bonds, Fed Funds and other interest rate-sensitive issues, currencies and stock market indices.
Federal funds rate
This is the interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans. The Fed Funds rate, as it is called, often points to the direction of U.S. interest rates.
Federal funds Reserve balances maintained by Federal Reserve System member banks that are above the required amount to back up deposits. Also called fed funds.
IDEM Membership (CBOT): A Chicago Board of Trade membership of trading privileges for futures contracts in the index, debt, and energy markets category (gold, municipal bond index, 30-day fed funds, and stock index futures).
Though these rates vary for reasons unrelated to Fed policy, the fed funds rate does serve as the basis for the pricing of other rates. If the Fed raises rates, individual companies' discount rates will also rise.
Banks with excess reserves can lend their reserves to banks with deficient reserves at the Federal Funds Market. The interest rate charged for these short (often just overnight) loans is called the Fed Funds Rate.
Prime Rate ...
When adjustments to the rate are made, they are done at the same time by the banks. The prime rate is, however, not adjusted on a regular basis. Fed Funds rate is also always considered when latter is changed.
A changein the fed funds rate, the lending rate banks charge each other for theuse of overnight funds, translates directly through to all othe rinterest rates from Treasury bonds to mortgage loans.
 See also: Market, Interest, Interest Rate, Future, Rate
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