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Topic: Federal funds rate


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  FRB: Monetary Policy, Open Market Operations
The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.
During the 1980s, the focus gradually shifted toward attaining a specified level of the federal funds rate, a process that was largely complete by the end of the decade.
Beginning in 1994, the FOMC began announcing changes in its policy stance, and in 1995 it began to explicitly state its target level for the federal funds rate.
www.federalreserve.gov /fomc/fundsrate.htm   (203 words)

  
  Current prime rate, fed funds rate, federal discount rate, COFI
It is in turn based on the fed funds rate, which is set by the Federal Reserve.
The fed funds rate is the primary tool that the Federal Open Market Committee uses to influence interest rates and the economy.
Changes in the fed funds rate and the discount rate also dictate changes in the Wall Street Journal Prime Rate, which is of interest to borrowers.
www.bankrate.com /brm/ratewatch/leading-rates.asp   (297 words)

  
 Federal funds rate, Greenspan and interest
For instance, in order to maintain a given interest rate target in the midst of strong economic activity the Fed may be forced to push more money into the system to prevent the fed funds rate from surpassing the target.
What we observe at present is the outcome of the massive lowering of the fed funds rate target from 6.5 per cent in early January 2001 to 1 per cent in June 2003, and which was kept at 1 per cent until June 2004.
Obviously, the small incremental rises in the fed funds rate target against the background of strong economic activity have made these targets not sustainable — the Fed had to lift its monetary pumping to prevent the fed funds rate overshooting the target.
www.brookesnews.com /052006interest.html   (904 words)

  
 Federal Funds Rate Data - Federal Reserve Bank of New York
By trading government securities, the New York Fed affects the federal funds rate, which is the interest rate at which depository institutions lend balances to each other overnight.
The daily effective federal funds rate is a volume-weighted average of rates on trades arranged by major brokers.
The effective rate is calculated by the Federal Reserve Bank of New York using data provided by the brokers and is subject to revision.
www.ny.frb.org /markets/omo/dmm/fedfundsdata.cfm   (169 words)

  
 Federal Funds Rate - Fed Funds Rate   (Site not responding. Last check: )
The interest rates that banks charge for mortgage loans are most predominantly affected by the Federal Funds rate.
This "Fed Funds" rate is the rate at which depository institutions (banks) lend money to each other (usually overnight) from their deposits at the Federal Reserve Bank.
Achieving a targeted rate by engaging open market operations is as much an art as a science.
www.homemortgagerates.us /fed-funds-rate.htm   (293 words)

  
 Federal Funds Rate - AskTheBrain.com
Federal law must be changed so that pension funds need simply seek a reasonable rate of return, not the prevailing market rate, which greatly restricts where investments can be made.
Federal Perkins Loan Students who demonstrate a need for financial assistance and a willingness to repay funds loaned to them at a low interest rate are eligible for these loans.
The Federal Reserve views sustained corporate spending and job growth as essential to an economic recovery and has justifiably left the federal funds rate unchanged at a 44-year low of 1.
www.askthebrain.com /federal_fund_rate-.html   (279 words)

  
 Definition of Federal Funds Rate (Fed Funds Rate)
The federal funds rate is the interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight.
The Federal Reserve Act specifies that the FOMC should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates." At each meeting, the FOMC closely examines a number of indicators of current and prospective economic developments.
A decrease in the federal funds interest rate stimulates economic growth, but an excessively high level of economic activity can cause inflation pressures to build to a point that ultimately undermines the sustainability of an economic expansion.
www.econmodel.com /classic/terms/fedfunds.htm   (248 words)

  
 Invest FAQ: Regulation: Federal Reserve and Interest Rates
This article discusses the interest rates which are managed or influenced by the US Federal Reserve Bank, a collective term for the collection of Federal Reserve Banks across the country.
The Discount Rate is the interest rate charged by the Federal Reserve when banks borrow "overnight" from the Fed. The discount rate is under the direct control of the Fed. The discount rate is always lower than the Federal Funds Rate (see below).
Once the spread between the two rates gets too large (meaning fat profits for the big banks which routinely borrow from the Fed at the discount rate and lend to smaller banks at the funds rate) the Fed moves to adjust the discount rate accordingly.
www.invest-faq.com /articles/regul-fed-reserve.html   (501 words)

  
 Federal Funds Rate History
The Federal Funds Rate is the cost of borrowing immediately available funds, primarily for just one day.
The effective rate is weighted average of the reported rates at which different amounts of the day's trading through New York Brokers occurs.
Federal Funds Rate History: For Historical Reference Only: Rates and explanations provided by the Federal Reserve System.
www.harpfinancial.com /InterestRateHistory/FederalFundsRate.htm   (82 words)

  
 Global Markets Awaiting Fed’s Next Move - Council on Foreign Relations
The testimony gave only an indirect clue as to his thinking about whether or not the next 25 basis point increase in the Federal funds rate would be agreed at the next FOMC meeting on September 21 or after the election.
Some Fed officials believe that the "neutral" Fed funds rate – a rate that is neither stimulative nor restrictive -- may be a lot lower than market participants seem to think, maybe just 2% or a little higher rather than the 4% plus rate than has been discussed in the markets.
One of the key determining factors of whether or not to raise the Fed funds rate is the outlook for the job market.
www.cfr.org /publication/7318/global_markets_awaiting_feds_next_move.html   (1196 words)

  
 Fed hikes have a silver lining for savers - Orlando Sentinel : Personal Finance
Money market funds, which invest primarily in short-term, high-quality money market securities such as certificates of deposit and commercial paper, are managed to maintain a price of $1 a share.
With the Federal Reserve raising its target for the federal funds rate for overnight loans to 5.25 percent from 5 percent on June 29, money market funds will be earning higher yields on new securities in their portfolio as current ones paying lower rates mature.
In general, a money fund's return will track the fed funds rate minus the fund's expense ratio, which is why the top-yielding funds are consistently those with lower expenses, Crane said.
www.orlandosentinel.com /business/yourmoney/sns-yourmoney-0806cruz,0,2782894.story   (845 words)

  
 Fed set to reduce interest rate again - The Washington Times: Business   (Site not responding. Last check: )
The Federal Reserve is prepared this week to drop a key interest rate to its lowest level since President Eisenhower's second term.
Greenspan to maximize the Fed's effects on interest rates at a time when the central bank has little maneuvering room left with its standard policy instrument, the federal funds rate, the interest that banks charge each other on overnight loans.
Greenspan and other Fed officials, investors became convinced that the central bank was ready to drop the funds rate and, more importantly, leave short-term interest rates low for a long time to ensure the economy could mount a sustained rebound.
www.washtimes.com /business/20030622-111556-1825r.htm   (856 words)

  
 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.
In fact, the FOMC sets a target for this rate, but not the actual rate itself (because it is determined by the open market).
Trying To Predict Interest Rates - Understand the various factors that influence them so you can learn to anticipate their movements for profit.
www.investopedia.com /terms/f/federalfundsrate.asp   (264 words)

  
 Federal Funds Rate Prediction
Recent research has reported that both the federal funds rate futures market and the federal funds target contain valuable information for explaining the behavior of the US effective federal funds rate.
In this paper we produce out of sample forecasts of the federal funds rate at horizons up to 8 weeks ahead using linear and nonlinear, regime-switching equilibrium correction models of the funds rate and employing both point and density measures of forecast accuracy.
However, in terms of density forecast accuracy, we find that the term structure model of the federal funds futures rate is significantly better than the other models considered, and that regime-switching models provide a substantial forecasting improvement relative to their linear counterparts and relative to individual series of the futures rate.
ideas.repec.org /p/ecj/ac2003/183.html   (577 words)

  
 Financial Search Engine - Federal funds rate   (Site not responding. Last check: )
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 most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate.
www.traders101.com /stock-trading/Federal-funds-rate.asp   (264 words)

  
 Taipei Times - archives   (Site not responding. Last check: )
Expectations are universal that the Fed would increase the funds rate, the interest that banks charge each other, by a quarter point to 4.25 percent, the highest level since May 2001.
That would leave the funds rate at 5 percent, a level that some economists believe the central bank may feel is needed to make sure that interest-rate sensitive sectors of the economy such as housing slow enough to keep inflation under control.
For all of the rate increases so far, the statements have promised that future increases will occur at a "pace that is likely to be measured," a phrase seen as a signal of more increases to come.
www.taipeitimes.com /News/worldbiz/archives/2005/12/14/2003284423   (828 words)

  
 Compare Mortgage Rates - Refinance Online - Free Mortgage Quotes to find the lowest mortgage & home loan rates.
The downside to waiting to see if rates drop is their is a good chance your home value will probably continue to decline which may limit your options.
The FHA ensures the FHA loan with the lender, but the mortgage rates are market driven and will vary from lender to lender so it is a good idea to compare quotes to make sure you are getting a competitive mortgage offer.
The immediate impact on lowering the fed funds rate is a move up with mortgage rates by.25 to.375 pts.
www.loannetwork.com   (1238 words)

  
 CBOT - Binary Options Specs
CBOT Binary Options on the Target Federal Funds Rate are contracts that have fixed payouts based upon the relationship between the option strike price and the target fed funds rate (quoted in 100-minus-rate terms), as set by the Federal Open Market Committee (FOMC).
An expiring option shall be cash settled with reference to the target fed funds rate (expressed in 100-minus-rate terms) that is in effect as of 5:00 p.m.
The target fed funds rate shall be as found in the most recently published Statement of the FOMC, typically published immediately following adjournment of any FOMC meeting.
www.cbot.com /cbot/pub/cont_detail/0,3206,1070+39173,00.html   (607 words)

  
 Graph of Federal Funds Rate and Table of Values - HSH Associates Library of Mortgage Information
This graph of the different Federal Funds rate over a number of years is presented by HSH Associates, Financial Publishers.
This graph lists the stated Federal Funds rate, as released by the Federal Reserve.
Here are the figures from which the graph was derived.
library.hsh.com /?row_id=88   (144 words)

  
 Compare mortgage rates, home loans, CD rates, auto loans, credit cards, mortgages and more
With the rush just starting, many businesses are on the lookout for seasonal workers.
Compare rates from mortgages to home equity to auto loans, CDs, MMA High Yields and more.
See rates from our national survey of mortgages, home equity products, auto loans, credit cards and CDs.
www.bankrate.com   (202 words)

  
 Open Market Operations - Federal Reserve Bank of New York
By buying and selling government securities, the Bank affects the aggregate level of balances available in the banking system, and thus impacts the federal funds rate.
Note: The New York Fed discontinued publication of weekly averages of the federal funds rate as of June 30, 2004.
The annual report of the implementation of open market operations used to control the federal funds rate.
www.newyorkfed.org /markets/openmarket.html   (163 words)

  
 Fed Funds Target Rate History (Historical)
The Federal Open Market Committee (FOMC) voted to leave short-term interest rates at their current level.
Therefore, the Federal Funds Target Rate will remain at the current
The next FOMC monetary policy meeting is set to occur on August 7, 2007.
www.fedfundsrate.info /federal_funds_rate_history.htm   (143 words)

  
 Effective Federal Funds Rate: Percent
Interest Rates from The Federal Reserve at St. Louis
Interest Rates from The Federal Reserve at Dallas
Find out about Advanced Features such as online regressions, XY plots, and multiple series charting.
www.economagic.com /em-cgi/data.exe/fedstl/fedfunds+2   (117 words)

  
 St. Louis Fed: Economic Data - FRED®
Welcome to FRED® (Federal Reserve Economic Data), a database of over 3000 U.S. economic time series.
With FRED® you can download data in Microsoft Excel and text formats and view charts of data series.
Bank Prime Loan Rate Changes: Historical Dates of Changes and Rates (2006-07-03)
research.stlouisfed.org /fred2   (112 words)

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