BNET Business Dictionary
Business Definition for: Federal Funds
- deposits held in reserve by the Federal Reserve System
Additional Resources
- Federal Funds Rate Prediction
- Recent research has reported that both the federal funds rate futures market and the federal funds target contain valuable information for explaining the behavior of the US effective federal funds rate. A parallel literature on interest rate modeling has recorded evidence that the dynamics of interest rates displays significant regime...
- White papers 2002-08-01
- Using the Federal Funds Futures Market to Predict Monetary Policy Actions.(Statistical Data Included)
- Changes in interest rates directly affect anyone who borrows or lends. A benchmark interest rate is the federal funds rate, the monetary policy instrument of the Federal Reserve System ("The Fed"). The federal funds rate serves as an anchor Changes in interest rates directly affect anyone...
- Research articles 2001-03-22
- Using federal funds futures rates to predict Federal Reserve actions. (includes article on the use of average funds rate as a biased estimator of the federal funds rate target)
- The Federal Reserve implements monetary policy by making discrete adjustments to its target for the federal funds rate. Such adjustments are believed to have significant implications for other short-term interest rates, so considerable resources are The Federal Reserve implements monetary policy by making discrete ...
- Research articles 1997-11-01
- Expectations, Open Market Operations, and Changes in the Federal Funds Rate.(federal funds market)(Statistical Data Included)
- The process through which Federal Reserve decisions about monetary policy are transmitted to the federal funds market has changed significantly in recent years. In 1994 the Federal Open Market Committee FOMC began to issue a public statement when The process through which Federal Reserve...
- Research articles 2001-07-01
- Estimates of the Term Premium on Near-dated Federal Funds Futures Contracts
- This paper examines estimates of the term premium on federal funds futures rates, with a focus on near-dated contracts and therefore the more immediate policy horizon. The first set of methods assumes that the term premium is constant over time. Under this framework, calculations that use survey data to proxy...
- White papers 2003-01-01
- What's Unique About the Federal Funds Rate? Evidence From a Spectral Perspective
- A large empirical literature attempts to identify US monetary policy shocks using the effective federal funds rate. This paper compares the time series behavior of the effective federal funds rate to 10 US interest rates with maturities ranging from overnight to 10 years. Using a spectral estimation procedure that is...
- White papers 2002-01-01
- Using the federal funds futures market to predict monetary policy actions
- Changes in interest rates directly affect anyone who borrows or lends. A benchmark interest rate is the federal funds rate, the monetary policy instrument of the Federal Reserve System ("The Fed"). The federal funds rate serves as an anchor for the financial system, and other interest rates key off its...
- Research articles 2001-04-01
- behavior of federal funds futures prices over the monetary policy cycle, The
- The use of federal funds futures derivative contracts has grown remarkably over the past decade. Commercial banks, corporations, and other market participants use these contracts to hedge interest rate risk and to speculate on interest rate movements. In addition to acting as a useful hedging tool, the contract prices also...
- Research articles 2002-04-01
- NW airport draws closer: federal funds due within week
- OFFICIALS HOPE TO RECEIVE the first batch of federal funds within the next week for the Northwest Arkansas Regional Airport as progress on the project trudges forward.The Northwest Arkansas Regional Airport Authority is waiting for $9 million in federal Airport Improvement Project funds for which it has applied.Scott Van Laningham,...
- Research articles 1994-09-26
- Using the Federal Funds Futures Market to Predict Monetary Policy Actions
- Our paper reviews the roles of the Federal Funds Futures market in forecasting the federal funds rate. Statistical estimates are presented for the Federal Funds Futures markets efficiency at predicting FOMC policy actions. A key finding is that the market forecast contains useful information and is unbiased at the usual...
- Research articles 2001-04-01
- Federal Open Market Committee raises federal funds
- The Federal Open Market Committee decided on Wednesday to raise its target for the federal funds rate by 25 basis points to 4 1/2 percent. In a press release issued from the committee, the FOMC said that economic activity appears solid and core inflation The Federal Open Market Committee decided...
- Research articles 2006-02-02
- Fed Reserve Cuts Rates.(Federal Reserve Board cut its bench mark federal funds target)(Brief Article)
- The Federal Reserve Board cut its bench mark federal funds target to 2 percent from 2.5 percent and in a related action, approved a 50 basis point reduction in the discount rate to 1.5 percent. The board said "heightened uncertainty and ... The Federal...
- Research articles 2001-11-12
- Fed pulls a fast one.(Federal Reserve makes surprise rate cut of 25 basis points on discount and federal funds rates)(Editorial)
- Futures traders were surprised when the Federal Reserve Fed suddenly cut the rates of discount and federal funds by 25 basis points on Oct 15, 1998. Only the stock indexes and the S&P 500 segments of the futures market were open and traders were oveFutures traders were surprised when the...
- Research articles 1998-12-01
- Tests of the market's reaction to federal funds rate target changes.
- For sometime now, the Fed has implemented monetary policy by making discrete adjustments to its target for the federal funds rate. Given that a change in the funds rate target is taken as a change in monetary policy, it is not surprising that the m ...
- Research articles 1998-11-01
- Alan Greenspan ended his 18-year watch over the Federal Reserve Bank by boosting the federal funds rate one-quarter percent to 4.5%.(THE NUMBERS)
- ALAN GREENSPAN ENDED his 18-year watch over the Federal Reserve Bank by boosting the federal funds rate one-quarter percent to 4.5%. Commercial banks quickly followed suit, raising the prime rate to 7.50%, its highest level in nearly five years. And ALAN GREENSPAN ENDED his 18-year...
- Research articles 2006-03-01
- Rate affects housing.(federal funds rate cut to 1%)(Brief Article)
- The Federal Open Market Committee FOMC decided on June 25 to lower the target for the federal funds rate to 1 percent, its lowest sustained level since 1958. Supplementing the recent tax-cut legislation, the Fed's rate cut will provide additiona The Federal Open...
- Research articles 2003-08-04
- Federal Reserve raises the federal funds rate
- The Federal Reserve raised the federal funds rate, the interest rate at which banks lend to each other overnight, a quarter-point to 1.5 percent in an effort to control inflation. In response, banks increased their prime rate, one of many interest rates based directly or indirectly on the federal funds...
- Research articles 2004-08-16
- Katrina will not deter more rate increases.(federal funds rate )(Brief Article)
- Katrina won't deter the Federal Reserve from more rate increases. Count on a quarter-point hike in the federal funds rate Sept. 20, bringing it to 3.75%, with that benchmark likely to hit 4% by year end. The Fed wants to make sure that interest ... ...
- Research articles 2005-09-09
- FOMC keeps federal funds target at 1 percent
- The target for the federal funds rate was kept at 1 percent at the May 4 meeting of the Federal Open Market Committee. In its statement, the FOMC said it "continues to believe that an accommodative stance of monetary policy, coupled with robust underThe target for the federal funds rate...
- Research articles 2004-06-01
- FOMC raises federal funds rate
- An expected increase in the federal funds rate of 25 basis points, to 1.25 percent, was approved by the Federal Open Market Committee at its June 30 meeting.An expected increase in the federal funds rate of 25 basis points, to 1.25 percent, was approved by the Federal Open Market Committee...
- Research articles 2004-08-01
