Federal Funds Rate
/ˈfɛdərəɫ fʌndz reɪt/
Definitions
- (n.) The interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.
The Federal Funds Rate influences monetary policy decisions and affects lending rates across the economy.
Forms
- federal funds rate
Related terms
See also
Commentary
The Federal Funds Rate is a key benchmark in U.S. monetary law and banking regulation; precise understanding aids in interpreting central bank communications and financial legislation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.