Set by the Federal Open Market Committee (FOMC), the federal funds rate directly controls whether banks will lend any excess reserves to meet federal requirements. This rate has a huge impact on ...

Interest is the monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

The Federal Reserve has increased the federal funds rate three times over the past year, by 25 basis points (0.25%) at a time, exactly the magnitude of the shift in the prime rate.

The Fed funds rate impacts short-term and long-term interest rates as well as foreign exchange rates. It also plays into broader economic considerations, like growth and employment.

Great question! The correct answer depends on the time period. Since January 2003, when the Federal Reserve System implemented a “penalty” discount rate policy, the discount rate has been about 1 ...

Impact of the Federal Funds Rate In the U.S., for example, Federal Reserve regulations call for financial institutions to maintain a certain amount of reserve funds in their Federal Reserve ...

With no change to the federal funds rate — the target range remains between 4.25% and 4.50% — savers are unlikely to see large rate swings.

High inflation, falling crop prices, and rising interest rates are squeezing U.S. farmers. Explore the latest impacts on farm ...

The Federal Reserve still has one more meeting before 2024 comes to an end, and by most predictions, it will bring yet another cut to the federal funds rate. It all depends on the data, though.

The Fed had cut rates in mid-2003, putting the fed funds target rate at 1%. That easy money helped GDP expand from +1.7% in 2001 to +3.9% in 2004—and by 2005, people were already talking about a ...

Ken McElroy discusses how the Fed's funds rate impacts the GDP. He explains how reducing the rate in 2020 created an economic ...

A first look at third-quarter GDP will be released next week. The Atlanta Fed's GDPNow model is forecasting a 0.3% growth rate for third-quarter GDP.