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USA Federal Funds Rate

What is a federal funds rate vs interest rate?

The fed funds rate is the interest rate that depository institutions—banks, savings and loans, and credit unions—charge each other for overnight loans. The discount rate is the interest rate that Federal Reserve Banks charge when they make collateralized loans—usually overnight—to depository institutions.

What affects fed funds rate?

Because the interest on reserve balances rate is an administered rate, the Fed can steer the federal funds rate by adjusting the interest on reserve balances rate. In fact, interest on reserve balances is the primary tool the Fed uses to adjust the federal funds rate.

Why is the federal funds rate a range?

The Fed funds rate is a range because the Federal Reserve cannot mandate a set number. Instead, it sets a target range of rates as a guide for banks to follow. Thus, the volume-weighted median of overnight banking transactions become the effective federal funds rate. Expectations for today's index and how it affects the currency

The expected reading for today's statement is 5.50%

A reading higher than expected has a positive impact on the currency, and a reading lower than expected has a negative impact on the currency

The news will be issued at 18:00 (GMT+00:00) UTC

Federal Funds Rate
Federal Funds Rate



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