Sentences with phrase «federal funds rate target»
Between them the IOER rate and the implicit ON - RRP rate define the upper and lower limits, respectively, of an effective federal funds rate target «range,» because most of the limited trading that now goes on in the federal funds market consists of overnight lending by GSEs (and the Federal Home Loan Banks especially), which are not eligible for IOER, to ordinary banks, which are.
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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.
And the Fed's federal funds rate target?
It means committing to keeping the federal funds rate target low for a considerable time and signaling this change clearly and loudly.
An increasingly transparent Federal Reserve, which has widely telegraphed its intention to raise interest rates before the end of the year did just that minutes ago when the FOMC lifted the federal funds rate target from 0.50 % to 0.75 %.
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.
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.
The market appears fixated on the Federal Reserve meeting that begins Wednesday, and the main question is whether the Fed will raise its federal funds rate target for the first time in nearly a decade.
The Federal Reserve board voted to raise the federal funds rate target in Q4, which has a big influence on the mortgage rates offered by lenders.
The Federal Reserve has left the federal funds rate target — which helps set other rates, including credit cards — near zero since December 2008.