Federal Funds Rate

What does it Mean? The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight.
Investopedia Says... 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).

Terms Related Links

Ben Bernanke
Discount Rate
Discount Window
Fed Model
Federal Reserve Bank
Federal Reserve Board - FRB
Federal Reserve Open Market Committee (FOMC)
Federal Reserve System
Open Market Operations
Prime Rate
Reserve Requirements

Terms Related Links
The Federal Reserve - Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.

Trying To Predict Interest Rates - Understand the various factors that influence them so you can learn to anticipate their movements for profit.

Formulating Monetary Policy - Learn about the tools the Fed uses to influence interest rates and general economic conditions.

The Fuel That Fed The Subprime Meltdown - Take a look at the factors that caused this market to flare up and burn out.

add investopedia foot
www.investopedia.com