Federal Reserve Float

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Dictionary Says

Definition of 'Federal Reserve Float'

Refers to the over-estimation of the country's money supply due to uncleared checks showing as an asset on the books of both the receiving and sending institution. This "double accounting" for a check occurs because the Federal Reserve generally credits a bank's account for the amount of a check within one to two days of that check being presented. However, it often takes slightly longer than that time for the same check to be presented to the issuing bank for actual payment of the funds, hence the double accounting of the amount.

The amount of float in the Federal Reserve System changes daily, weekly, and monthly. Typically, the first few banking days after the weekend, the end of the month and the holidays all experience a higher level of float due to an increased volume in processed checks.
Investopedia Says

Investopedia explains 'Federal Reserve Float'

One of the goals of an efficient banking system would be zero float, meaning that all money is withdrawn from one account and deposited into another the moment a check is presented. While this is not currently the case, it is important to note that the amount of float in the system has been cut dramatically over the last few decades due to active anti-float programs from the Federal Reserve and an increasing move towards the electronic transfer of funds. It's not unreasonable to expect that Federal Reserve float will be virtually eliminated in the next few decades.
   
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'Federal Reserve Float'

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    ... thus floating the banks that, in turn, helped to float the businesses ... banker forced
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    ... This is a biggie, because casinos often float huge bonds in order to fund growth. ...
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  • The New World Of Emerging Market Currencies

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    ... loosely institutes this rule, allowing the South African rand to float freely versus ...
    in favor of rate hikes or cuts, much like US Federal Reserve Chairman Ben ...

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    ... Demand; 4.13 Short and Long-run Macroeconomic Equilibrium; 4.14 Economic
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    ... 9.20 Monetarist Theory; 9.21 The Federal Reserve Board; 9.22 ... Securities of municipal,
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    ... 9.20 Monetarist Theory; 9.21 The Federal Reserve Board; 9.22 ... but remember, that is
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    ... which involves looking at whether the capital budget is separate from the operating
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    ... 9.20 Monetarist Theory; 9.21 The Federal Reserve Board; 9.22 International Economic ...
    start-ups looking for venture capital - might float participating preferred ...

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