What is the current concern regarding the federal funds rate quizlet
The fed funds rate is the interest rate banks charge each other to lend Federal Reserve funds overnight. These funds maintain the federal reserve requirement. The nation's central bank requires that they keep this amount on hand each night. The federal funds rate The FOMC's primary means of adjusting the stance of monetary policy is by changing its target for the federal funds rate. 5 To explain how such changes affect the economy, it is first necessary to describe the federal funds rate and explain how it helps determine the cost of short-term credit.