Definitions for federal funds rate
fed·er·al fund·s rate

WikidataRate this definition:0.0 / 0 votes

1. 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. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets. The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate. The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule. The Federal Reserve uses open market operations to influence the supply of money in the U.S. economy to make the federal funds effective rate follow the federal funds target rate.

How to pronounce federal funds rate?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say federal funds rate in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of federal funds rate in Chaldean Numerology is: 3

2. Pythagorean Numerology

   The numerical value of federal funds rate in Pythagorean Numerology is: 6

Examples of federal funds rate in a Sentence

1. Federal Reserve Chair Janet Yellen:

   If incoming data are consistent with labor market conditions strengthening and inflation making progress toward our 2-percent objective, as I expect, further gradual increases in the federal funds rate are likely to be appropriate.

2. The Fed:

   The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.

3. Stanley Fischer:

   One possible concern about our unconventional policies has eased recently, as the Fed's normalization tools proved effective in raising the federal funds rate following our meeting two-and-a-half weeks ago, of course these are early days yet.

4. James Bullard:

   Inflation measures have declined substantially since the end of last year and are presently running some 40 to 50 basis points below the FOMC's 2% inflation target, the forces that are keeping inflation below target seem unlikely to be solely transitory...Lowering the target range for the federal funds rate at this time would provide insurance against further declines.

5. Joe Brusuelas:

   The Fed buys and sells government securities each day to maintain the range of its policy rate — the federal funds rate — between 4.5% and 4.75%, they do this each day and it is normal for the central bank to inject and withdraw liquidity from the market to achieve their policy objectives.

References

1. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=federal funds rate