Sentences with phrase «federal funds rate]»

And just yesterday, Mester supported her colleagues» notion to announce a plan for balance sheet reduction, which will take «several years,» as well as a return to using the federal funds rate as the «main tool» for monetary policy.

So when U.S. inflation rises to this level, the Fed will likely raise the federal funds rate.

For several years now, the Fed has been purchasing mortgage - backed securities and holding the federal funds rate near 0 % in order to stimulate a sluggish economy.

As shown in the figure above, the long - term trend in mortgage rates largely reflects the path of the 3 - month Treasury Bill rate, which is proxy for the federal funds rate.

First, there is no longer much of a market for federal funds.

The Federal Reserve is expected to increase the short - term federal funds rate later this year or early next.

Investors will also be looking for further visibility on the central bank's near - term strategy for federal funds.

Under assumptions that I consider more realistic under present circumstances, the same rules call for the federal funds rate to be close to zero.

The Federal Reserve has just ended its latest FOMC meeting, and the first such gathering under the stewardship of Jerome Powell, and voted to raise the federal funds rate target by 25 basis points.

Reflecting indications that US economic growth remains robust and concerns that inflationary pressures may be building, markets are now expecting the federal funds rate to reach 3 1/4 per cent by August, which implies 25 basis point increases at three of the next four FOMC meetings (Graph 17).

Consequently, interest rate policy is now conducted using two new policy rates to create a federal funds rate target «range:» the interest paid on excess reserves (IOER) creates the target ceiling while the overnight reverse repurchase (ON RRP) rate creates the target floor.

Determining the peak federal funds rate over the cycle is the key to estimating the level of mortgage rates at the end of the current business cycle.

This is significantly higher than expected at the time of the last Statement, when futures markets expected that the federal funds rate would only be around 2 1/2 per cent in the middle of 2005.

[1] The Framework discusses, ``... steps to raise the federal funds rate and other short - term interest rates to more normal levels...» That language, however, is ambiguous as the federal funds market has shrunk dramatically in a financial system awash in reserves.

In short, when the Federal Reserve raises the short - term federal funds rate (which applies to inter-bank transfers), mortgage rates tend to go up as well.

Its target was the federal funds rate, the interest rate paid by banks to borrow reserves from other banks.

In such a world, «announced changes in the federal funds rate therefore have no implications for economic activity, or the rate of inflation» (Jordan 2016: 382).

The Fed voted for the first federal funds increase in almost a decade on December 15, 2015.

But in their most recent policy meeting, Fed officials stated they could raise the federal funds benchmark sometime this year, possibly during the second quarter.

Specifically, by altering the supply of bank reserves, the Fed could influence the federal funds rate — the rate banks paid other banks to borrow reserves overnight — and so keep that rate on target.

Yet instead of enhancing the Fed's conventional powers of monetary control, the ballooning of the Fed's balance sheet has sapped those powers by making it unnecessary for banks to routinely borrow from one another in the federal funds market to meet their legal reserve requirements.

In July, during one of their regularly scheduled meetings, Federal Reserve officials «decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent.»

However, Ashok Bhatia, senior portfolio manager at Neuberger Berman stresses that despite his appointment: «Futures markets overwhelmingly expect the Fed to raise the federal funds rate by 25bp following its 13 December policy meeting.

This is partly the result of the Federal Reserve's current monetary policy, which is holding the shorter - term federal funds rate near 0 %.

If rates do start rising steadily in the near future, it will probably happen when the Federal Reserve raises the federal funds rate (used for inter-bank lending).

Consequently, the Fed can no longer target the effective federal funds rate, and influence other short - term interest rates, just by making modest changes to the stock of bank reserves.

They include as potential influencers three other precious metals futures, crude oil spot and futures, two commodity indexes, U.S. and world stock indexes, currency exchange rates, 10 - year U.S. Treasury note (T - note) yield, U.S. Federal Funds Rate (FFR), a volatility index (VIX) and U.S. and world consumer price indexes.

Conversely, when the Federal Reserve lowers the federal funds rate, borrowers can expect to save some money on their monthly loan payments since they may owe less interest.

While the Federal Reserve has no control over it, the prime interest rate is usually pegged to the federal funds rate (or the rate at which banks and credit unions lend funds to other financial institutions through overnight transactions).

See, as the 2000 - 2002 bear market was just starting, the Federal Reserve under Alan Greenspan immediately shifted to fresh monetary easing, cutting the Federal funds rate and the Discount rate on January 3, 2001.

He controls for multiple economic and financial variables likely to be related to stock market returns (gross domestic product, industrial production, unemployment rate, consumer price index, Federal Funds target rate, term spread, credit spread and dividend yield).

Finally, I think the Fed may adopt an easier path for the federal funds rate.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation.

And the Fed's federal funds rate target?

What we essentially saw was a forecast that conveyed two tightenings over the course of 2016 — two 25 - basis - point increases in the federal funds rate.

Since its initial nudge, the Fed has increased the federal funds rate just three times — once in 2016, and twice so far in 2017.

... As the size of the balance sheet and the quantity of excess reserves in the system decline, the Federal Reserve will be able to return to its traditional means of making monetary policy — namely, by setting a target for the federal funds rate.

The rate at which the Fed sells or purchases government bonds determines the federal funds rate, or the rate at which banks can borrow funds from one another overnight.

The federal funds rate, which governs the cost of lending between banks and serves as a benchmark for the whole economy, has stood at a zero to 0.25 percent range since December 2008, during the depth of the financial crisis.

Think back to 2006 when the federal funds target rate was at 5.25 %.

The Trump administration has invoked Garcia Zarate and the slaying in its effort, unsuccessful so far, to strip federal funds from cities and states that refuse to take part in immigration enforcement.

Historically, the Federal Reserve used repos and reverse repos to adjust the aggregate quantity of reserves so as to keep the federal funds rate close to the target rate established by the FOMC.

The interest rate was revised such that borrowings under the refinanced Term Loan bear interest at a rate equal to, at our option, either (a) LIBOR (not less than 1.0 %) plus 3.0 % per annum or (b) 2.0 % per annum plus the highest of (i) the Federal Funds Rate plus 0.5 %, (ii) the Prime Rate, or (iii) one - month LIBOR plus 1.0 %.

Borrowings under the refinanced Credit Facility bear interest at a rate equal to, at our option, either (a) LIBOR (not less than 1.0 % for the Term Loan only) plus 3.75 % per annum or (b) 2.75 % per annum plus the highest of (i) the Federal Funds Rate plus 0.5 %, (ii) the Prime Rate, or (iii) one - month LIBOR plus 1.0 %.

Pat Schramm, executive director of the Workforce Development Board of South Central Wisconsin, a nonprofit that uses federal funds to help employees get training and jobs, said a Rapid Response Team will execute a plan right away.

In November 2013, Desert Newco refinanced the term loan, lowering the interest rates to either (a) LIBOR (not less than 1.0 %) plus 3.0 % per annum or (b) 2.0 % per annum plus the highest of (i) the federal funds rate plus 0.5 %, (ii) the prime rate, or (iii) one month LIBOR plus 1.0 %, with step - downs of up to 0.25 % depending on Desert Newco's credit ratings.

Infrastructure, we're going to start spending on infrastructure big, said Donald Trump days before he unveiled his $ 1.5 trillion infrastructure budget proposed by his administration, but as economists have pointed out, Trump's proposed budget requests only $ 200 billion in federal funds and slashes billions in transportation funding, billions more from water, energy.

At the same time, the Fed kept the federal funds rate at the lower zero bound.

The interest you'll pay is most commonly based on a benchmark rate, usually the federal funds rate.

Borrowings under our credit facility bear interest at a per annum rate equal to, at our option, either (a) for LIBOR loans, LIBOR (but not less than 1.0 % for the term loan only) or (b) for ABR loans, the highest of (i) the federal funds effective rate plus 0.5 %, (ii) the prime rate, or (iii) one month LIBOR plus 1.0 %, plus a margin ranging from 3.25 % to 3.75 % for LIBOR loans and 2.25 % to 2.75 % for ABR Loans, depending on our leverage ratio and on certain factors relating to this offering.