Sentences with phrase «us federal funds rate»

«Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic conditions, the committee decided to raise the target range for the federal funds rate to 0.25 to 0.50 percent,» the FOMC's post-meeting statement said.

The committee says it expects «economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.

To tweak interest rates, the Fed adjusted the federal funds rate, also known as the interbank lending rate, which is used by financial institutions to set the prime rate, or the base rate upon which other interest rates are set.

There was some shifting in the FOMC's closely watched «dot plot» — a chart that depicts where each member expects the federal funds rate to be in the years ahead.

Critics have worried that the Fed has missed opportunities to normalize policy, but Yellen said «the risk of falling behind the curve in the near future appears limited, and gradual increases in the federal funds rate will likely be sufficient to get to a neutral policy stance over the next few years.»

«Moreover, holding the federal funds rate at its current level for too long could also encourage excessive risk - taking and ultimately undermine financial stability.»

A Dec. 9 Reuters poll showed the likelihood of a hike on Wednesday was 90 % with economists forecasting the federal funds rate to be 1.0 - 1.25 % by end - 2016 and 2.25 % by end - 2017.

The federal funds rates sets the rate at which banks borrow from one another, and it is the underpinning for the loan rates banks set for businesses and consumers.

The median forecast pegged the federal funds rate at 2.1 percent at the end of next year.

«Were the FOMC to delay increases in the federal funds rate for too long, it could end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of the Committee's longer - run policy goals» on inflation and jobs, Yellen said.

For her part, Federal Reserve Chairwoman Janet Yellen said in June that the removal of the Fed as a prop in October might not coincide with an immediate increase in its federal funds rate, which has hovered near zero since the financial crisis began.

But this amount will increase as interest rates begin to rise — which they're expected to do as the federal funds rate increases.

According to the minutes, most Fed officials said at their November 2nd meeting that it would be «appropriate to raise the target range for the federal funds rate relatively soon.»

In any case, in addition to the court - determined fair value price, the plaintiff also gets accrued interest of 5 % over the federal funds rate.

«I believe the Federal Reserve should be gradually and patiently raising the federal funds rate during 2018,» Dallas Federal Reserve Bank President Robert Kaplan said in an essay released on Wednesday that updated his views on the economic and policy outlook.

All of this raises questions about support for a critical line in the Fed's statement where it says: «The federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.»

The U.S. central bank hasn't raised the federal funds rate since 2006.

In her speech on Friday, she made headlines saying, «Based on my outlook, I expect that it will be appropriate at some point later this year to take the first step to raise the federal funds rate and thus begin normalizing monetary policy.»

The hikes ultimately will return the central bank's key short - term rate, called the federal funds rate, to about 4 percent over the next two years, which economists generally consider more a sustainable level.

The federal funds rate is the rate that banks use to set the prime rate, their own lending floor for everything from credit cards to lines of credit and commercial loans.

With credit card debt rising steadily, the quarter - percentage - point increase in the federal funds rate will cost consumers roughly $ 1.6 billion in extra finance charges in 2017, according to a WalletHub analysis.

«I will be looking closely at the evolution of inflation before making a determination about further adjustments to the federal funds rate,» she said.

«In that case, it would be prudent to raise the federal funds rate more gradually.»

One way to gauge what the market expects in terms of short - term rates is to look at Fed Funds future contracts, which allow investors to place bets on what where the federal funds rate will be in the future (This long - term view can influence short - term rates).

Higher inflation this year should push the Fed to raise the federal funds rate at a faster pace, which will have knock - on effect on interest rates and the bond market.

«Powell obviously needs to raise the federal funds rate but he has one very important asset that could keep the 10 - year bond yield from blasting off.

Not only has Fed Chairman Ben Bernanke indicated that the federal funds rate will probably stay at rock bottom until 2015 in his latest public communication, but Vice Chair Janet Yellen, who is the front - runner to succeed him if he leaves in January, would be least likely to hike up short - term rates prematurely.

The federal funds rate at the end of 2016 will be 0.5 %, up from 0.25 % this November.

The Federal Reserve Board again held off raising its benchmark federal funds rate on Thursday, citing less than desirable economic circumstances.

In turn, the manufacturing - sector recovery, combined with a low neutral federal funds rate, is increasing «the odds of a long lasting US equity bull market,» Einhorn wrote.

But nearly half of borrowers thought variable - rate student loans are indexed to the federal funds rate (27 percent of respondents) or 10 - year Treasury yields (19 percent).

The target for the overnight rate is also the most appropriate policy rate for international comparisons; for example, with the target for the federal funds rate in the United States and with the two - week repo rate in the United Kingdom.

That rate changes as the Federal Reserve influences the Federal Funds Rate (the Wall Street Journal publishes this rate by polling the major banks — more info can be found here).

The Federal Reserve has left the federal funds rate at 1.5 % to 1.75 % and says core and overall inflation are close to a 2 % target.

He points to a stronger dollar, fiscal retrenchment in the European Union, improving equity market confidence, and an exit strategy from the Federal Reserve forecasting a federal funds rate hike well before late 2014 as significant factors driving gold lower.

The Fed statement said: «The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.»

Here's an example of how this works: if the Federal Reserve changes the federal funds rate from 0.75 % to 1.0 %, the banks may change their prime rate from 3.75 % to 4.0 %.

Although LIBOR and the prime rate do track the federal funds rate closely, the federal funds rate is not a benchmark for student loans.

The low 4.1 - percent unemployment level and continuous growth of wages support this federal funds rate projection.

During this period, the Federal Reserve tried to support employment by cutting its federal funds rate target nearly to zero; by creating a number of special liquidity facilities to support the extension of credit; and by engaging in a large scale asset purchase program, buying Treasuries, agency debt and agency mortgage - backed securities.

The FOMC's policy normalization principles and plans make the temporary nature of the ON RRP clear by stating that it will be discontinued when it is no longer needed to help control the federal funds rate.26 This intention was noted again in the minutes to the January FOMC meeting.

For the time period in question, the federal funds rate was low (by historic standards), leading the Fed to dismiss the yield curve's «prediction» of recession.

«In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months,» Yellen said in prepared remarks to a central bankers conference in Jackson Hole, Wyo..

This element is offering a market based pricing of the market's expectation for the Federal Funds Rate, the instrument of Federal Reserve policy.

The federal funds rate influences the prime interest rate, or the rate banks give to their best customers.

It is of great importance that the public is confident that the federal funds rate will be, on average over time, within the target range set forth by the FOMC, and that other money market rates will continue to move closely with changes in the federal funds rate.

While federal funds rate changes don't directly impact peer - to - peer (P2P) loan interest rates, lending platforms may begin increasing their rates.

It also looks as though the increase in the federal funds rate passed through effectively into term money market instruments.

Feb 02, 2017 In December 2015, the Federal Reserve raised the federal funds rate by a quarter of a percentage point.

In a nutshell, Wright finds that the two factors of yield curve inversion and the federal funds rate may be used together to better predict the likelihood of a recession occurring within a future twelve - month period.