- 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.
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).
Investment dictionary. Academic. 2012.
Look at other dictionaries:
federal funds rate — USA federal funds effective rate, Also known as federal funds rate. A floating interest rate reference rate used by a lender under a loan agreement. In general terms, it is the rate per annum equal to the rate charged on federal funds… … Law dictionary
Federal funds rate — Saltar a navegación, búsqueda En los Estados Unidos, la Federal funds rate (tasa de interés de fondos federales) es una tasa de interés bajo la cual instituciones depositarias privadas (principalmente bancos) prestan dinero (fondos federales) en… … Wikipedia Español
Federal funds rate — In the United States, the federal funds rate is the interest rate at which depository institutions actively trade balances held at the Federal Reserve, called federal funds, with each other, usually overnight, on an uncollateralized basis.… … Wikipedia
Federal Funds Rate — Wichtige Leitzinsen Zinssatz Höhe Europäische Zentralbank (letzte Änderung: 9. November 2011) Einlagesatz 0,50 % Hauptrefinanzierungssatz 1,25 % Spitzenrefinanzierungssatz 2,00 % Schweizerische Nationalbank (letzte Änderung: 3.… … Deutsch Wikipedia
federal funds rate — The rate of interest charged for the use of federal funds. Chicago Board of Trade glossary The rate for which overnight federal funds are traded. American Banker Glossary The interest rate that banks with excess reserves at a Federal Reserve (… … Financial and business terms
federal funds rate — The highly volatile and sensitive interest rate charged between member banks of the Federal Reserve System As the overnight rate paid on federal funds, it is a key indicator of money market interest rates. Every transaction can alter the level at … Big dictionary of business and management
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. The New York… … Financial and business terms
Federal Discount Rate — The interest rate set by the Federal Reserve that is offered to eligible commercial banks or other depository institutions in an attempt to reduce liquidity problems and the pressures of reserve requirements. The discount rate allows the federal… … Investment dictionary
federal funds effective rate — USA federal funds effective rate, Also known as federal funds rate. A floating interest rate reference rate used by a lender under a loan agreement. In general terms, it is the rate per annum equal to the rate charged on federal funds… … Law dictionary
federal funds — Member bank deposits at the Federal Reserve; these funds are loaned by member banks to other member banks. Chicago Board of Trade glossary Short term investments/borrowings between banks, usually called fed funds. The investing/lending bank… … Financial and business terms