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Federal funds rate

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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 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 charged to borrow funds in the federal funds market.
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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 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 Rate at which banks charge each other for lending out excess reserves.
Federal Home Loan Bank A Federally chartered, privately owned company charged with regulating the S&L industry.
FHLB See Federal Home Loan Bank.

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 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 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.

  • 6:00pm USD FOMC Meeting Minutes noted that, 'In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to ΒΌ percent and currently anticipates that economic conditions - including low rates of ...

    Fed funds rate Federal Funds Rate (or Fed Funds Rate) - the interest rate banks charge... Fed Governor Speaks - United States The seven members of the Board of Governors have voting power in all three monetary...

    Federal funds rateThe interest rate charged to borrow funds in the federal funds market.

    Federal funds rate
    Federal gift tax
    Federal Home Loan Banks
    Federal Housing Administration (FHA)
    Federal Housing Finance Board (FHFB)
    Federal Intermediate Credit Bank
    Federal intrafund transactions
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    The Federal Reserve can: alter the amount of reserve that member banks are required to maintain; control the discount rate; and, the Federal Funds rate.

    In the case of the US dollar, this is the Federal Funds Rate. This interest is added every single day whether the market is trading or not.

    The Fed usually adjusts the federal funds rate by 0.25 or 0.50 percentage points at a time. From early 2001 to mid 2003 the Fed lowered its interest rates 13 times, from 6.25 to 1.00 percent, to fight recession. In November 2002, rates were cut to 1.

    After then-Fed Chairman Paul Volcker courageously hiked the federal funds rate to 20% in 1980 to slay an inflationary beast, the gold market snapped back, fell out of favor with most investors, ...

    central bank's so-called federal funds rate. This is understood as a call money rate in the interbank markets in the U.S.. The federal funds rate is controlled by various instruments of the Fed - direct restraint, such as in Europe are not available.

    The Federal Reserve funding requirements are fulfilled by the banks with overnight loans for which the federal funds rate applies. This rate and a little addition is frequently used for lending money to a good number of creditworthy customers.

    The prime rate is generally about three percent higher than the federal funds rate. The federal funds rate is the rate that banks charge when lending to each other.

    It simple, when the federal funds rate and discount rates are moved higher in succession by the Federal Reserve, a negative posture is taken by the markets.

    The Federal Reserve recently raised its target federal funds rate for the first time since March 2000.

    The real interest rate is the average Federal Funds rate minus the inflation rate. Most economists use the real interest rate for analysis to determine the general future direction of interest rates and the overall market.

    Leading Indicators - Such statistics as unemployment rates, CPI, Federal Funds Rate, retail sales, personal income, discount rate and the prime rate that are used to predict economic activity.

    In past years, however, the focus has been to attain a specific level of the federal funds rate. This rate is the interest rate for which depository institutions lend balances at the Federal Reserve to other depository institutions over night.

    The broker loan rate usually is a percentage point or so above such short-term rates as the federal funds rate or the Treasury bill note. Broker loans are usually callable on 24-hour notice, hence the term call loan rate.

    Leading Indicators - Statistics that are considered to predict future economic activity. Examples are Unemployment, Consumer Price Index, Producer Price Index, Retail Sales, Personal Income, Prime Rate, Discount Rate, and Federal Funds Rate.

    Leading Indicators - Economic variables that are considered to predict future economic activity (i.e. Unemployment, Consumer Price Index, Producer Price Index, Retail Sales, Personal Income, Prime Rate, Discount Rate, and Federal Funds Rate).

    charge brokerages to cover the security positions of the brokerage's customers. Most brokerages will charge you slightly above this amount when you borrow on margin. Usually the rate is about a percentage point higher than the Federal Funds Rate.

    It is important to note that government involvement affects bear markets. Changes in the federal funds rate or in various tax rates can encourage economic expansion or contraction, ultimately leading to bull or bear markets.

    See also: Federal funds, Rate, Interest, Market, Interest Rate

    Stock market Federal fundsFederal home loan banks

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