Federal Funds Rate
Definition of '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. |
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Investopedia explains 'Federal Funds Rate'This is what news reports are referring to when they talk about the Fed changing interest rates. In fact, the FOMC sets a target for this rate, but not the actual rate itself (because it is determined by the open market). |
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