Sentences with phrase «fed funds rate affects»

Not exact matches

Even if the Fed can change the fed funds rate in that situation, we must question whether it can predictably affect economic activiFed can change the fed funds rate in that situation, we must question whether it can predictably affect economic activifed funds rate in that situation, we must question whether it can predictably affect economic activity.

In a related statement, Fed officials said: «Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent.»

In an earlier blog post, we provided a brief survey of recent monetary policy cycles in the U.S., showing that a higher Fed funds rate doesn't necessarily affect the yield on Treasury bonds in the same way.

Benchmark interest rates, such as the LIBOR and the Fed funds rate, affect the demand for money by raising or lowering the cost to borrow — in essence, money's price.

When the Fed increases the federal funds rate, it does not directly affect the stock market itself.

Benchmark interest rates, such as the LIBOR and the Fed funds rate, affect the demand for money by raising or lowering the cost to borrow — in essence, money's price.

With Fed Funds, you can understand how the announcement alone can change the rate by understanding a) that the entire variation in bank reserves that determines the Fed Funds rate amounts to only a few billion dollars, and b) banks are generally willing to follow the rate «called out» by the Fed so long as it doesn't affect the spread they earn.

«Borrowing rates are typically tied to the prime rate, which is affected whenever the Fed decides to raise the federal funds rate,» Beyer said.

The Fed lowered the federal funds rate — a key interest rate benchmark that affects most consumer loans — down to zero in 2008 and has yet to raise it.