Federal funds

federal funds rate investment & finance definition
The rate of interest on overnight loans of excess reserves made among commercial banks.

Federal funds rate
The interest rate that banks charge other banks for overnight loans at the Federal Reserve. It is closely monitored by market participants and used by the Fed to guide monetary policy.

Federal funds transactions neither increase nor decrease total bank reserves. Instead, they redistribute reserves and enable otherwise idle funds to yield a return.

Financial arrangements effected by payments made from one fund group (either Federal funds or Trust funds) to another group.

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Federal funds market
The market where banks can borrow or lend reserves, allowing banks temporarily short of their required reserves to borrow reserves from banks that have excess reserves.
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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.

Federal Funds Rate Rate at which overnight FedFunds are traded.
Federal Reserve System A system established in 1913 to regulate the U.S. monetary and banking system. The system consists of a board of governors in Washington, D.C.

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.

Federal funds
Funds deposited by commercial banks at Federal Reserve district banks. Designed to enable banks temporarily short of their reserve requirement to borrow reserves from banks having excess reserves. See federal-funds rate.
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Federal Funds Non-interest-bearing deposits of banks with the Federal Reserve. Banks lend excess reserves out to each other.
Federal Funds Rate Rate at which banks charge each other for lending out excess reserves.

Federal funds rate The interest rate on overnight loans of excess reserves made among commercial banks. Set by the Federal Open Market Committee (FOMC) of the Federal Reserve, this rate is an important monetary policy indicator.

Federal funds rate
The interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.

Federal funds rate
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 US interest rates.

Federal funds rate
The interest rate banks pay when they borrow federal funds from other banks.

Federal Funds: Funds deposited with the Federal Reserve and used by banks and financial institutions to cover short-term cash needs.

Federal Funds - Member bank deposits at the Federal Reserve; these funds are loaned by member banks to other member banks.
Federal Funds Rate - The rate of interest charged for the use of federal funds.

Federal Funds Rate: This rate, set daily by the market, is the most sensitive indicator of the direction of interest rates.

Federal funds: Very short-term loans (usually overnight) between banks, without any collateral.
Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac"): Purchases conventional mortgages from federally chartered savings and loans.

Federal Funds Rate: The federal funds rate is the rate of interest at which banks with excess reserves charge banks lacking these reserves for overnight loans, in order for the latter to meet their reserve requirements.

Federal Funds Rate: The rate of interest charged for the use of federal funds.

Federal Funds
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.
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Federal Funds Rate: The rate of interest charged for the use of federal funds.
Federal Housing Administration (FHA): A division of the U.S.

Good money
Federal funds that clear on the same day, unlike clearinghouse funds, which require three days to clear.
Good-this-Month order (GTM)
An order to buy or sell securities that continues to be a valid order until the end of the current month.

Federal Funds. Interest-bearing deposits held by banks and other depository institutions at the Federal Reserve; these are immediately available funds that institutions borrow or lend, usually on an overnight basis.

Overnight (GBP) or Federal funds (USD) currency lent by banks on a very short term basis which can be called the same day, at one days notice or at two days notice.
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