Fed funds: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>John Grout m (To add clarification on federal funds rate - a term often used loosely or made a defined term in loan agreements) |
(Add link.) |
||
| (8 intermediate revisions by one other user not shown) | |||
| Line 1: | Line 1: | ||
''US | ''US banking''. | ||
Fed funds ("Federal funds") are funds deposited by commercial banks at Federal Reserve Banks, including funds in excess of bank reserve requirements. | |||
Banks may lend federal funds to each other on an overnight basis to help the borrowing bank satisfy its reserve requirements or liquidity needs. This lending will be at the lender's "federal funds rate". The Federal Reserve calculates and publishes the "effective federal funds rate" [[EFFR]] as a weighted average of the reported transaction rates for each business day. | |||
Banks may lend federal funds to each other on an overnight basis to help the borrowing bank satisfy its reserve requirements or liquidity needs. | |||
This lending will be at the lender's "federal funds rate". | |||
The Federal Reserve calculates and publishes the "effective federal funds rate" ([[EFFR]]) as a weighted average of the reported transaction rates for each business day. | |||
== See also == | == See also == | ||
* [[Board of Governors of the Federal Reserve System]] | |||
* [[Federal funds futures]] (FFF) | |||
* [[Federal Funds Rate]] | |||
* [[Federal Reserve Bank]] | * [[Federal Reserve Bank]] | ||
* [[Federal Reserve System]] | * [[Federal Reserve System]] | ||
* [[OBFR]] | * [[OBFR]] | ||
* [[PCE inflation]] | |||
* [[Policy interest rate]] | |||
* [[Quantitative easing]] | |||
* [[Weighted average]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 20:02, 20 December 2023
US banking.
Fed funds ("Federal funds") are funds deposited by commercial banks at Federal Reserve Banks, including funds in excess of bank reserve requirements.
Banks may lend federal funds to each other on an overnight basis to help the borrowing bank satisfy its reserve requirements or liquidity needs.
This lending will be at the lender's "federal funds rate".
The Federal Reserve calculates and publishes the "effective federal funds rate" (EFFR) as a weighted average of the reported transaction rates for each business day.
