Search This Blog

Saturday, 31 January 2015

Federal funds rate and open market operations.

http://en.wikipedia.org/wiki/Federal_Reserve_System#cite_note-91

The Federal Reserve System implements monetary policy largely by targeting the federal funds rate. This is the interest rate that banks charge each other for overnight loans of federal funds, which are the reserves held by banks at the Fed. This rate is actually determined by the market and is not explicitly mandated by the Fed.

No comments:

Post a Comment