Category: Fed Rate

Interbank lending rates are crucial components of the financial system, referring to the rates at which banks lend to each other. These rates are significant because they influence the availability and cost of money and credit throughout the banking system. While “interbank lending rates” is a global term, in the context of the United States,…

The Federal Open Market Committee (FOMC) is a component of the Federal Reserve System, the central bank of the United States, and is charged with overseeing the nation’s open market operations. This body plays a crucial role in American economic policy by setting short-term interest rates and controlling the supply of money in the U.S.…

The US federal interest rate, often referred to as the Federal Funds Rate, is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. It’s set by the Federal Open Market Committee (FOMC) of the Federal Reserve (the Fed), which is the…