Federal Funds Rate

Categories: News | Science | Economics
    • Rate as of July 18, 2008: 2.00%Bank Rate: Federal Funds Rate
    • June 2007 rate: 5.25%
    • Federal Reserve Chairman: Ben Bernanke
    • The FOMC has eight regularly scheduled meetings a year
    • The FOMC can also schedule additional meetings as required
    • The FOMC has 12 members, including seven members of the Board of Governors of the Federal Reserve, president of the Federal Reserve Bank of New York and four of the other 11 Reserve Bank presidents
    • 10-year low: 1.00% in 2003MoneyCafe.com: Fed Funds Target Rate
    • 10-year high: 6.5% in 2000MoneyCafe.com: Fed Funds Target Rate
  • The federal funds rate is the interest rate charged by depository institutions (i.e. banks) to lend balances at the Federal Reserve to other institutions overnight.
  • Background

    The rate is set at meetings of the Federal Open Market Committee, (FOMC). Often referred to as the fed funds rate, or target rate, this is a key parameter used by the Federal Reserve to set monetary policy. The fed funds rate is also used to regulate the supply of money in the U.S. economy.

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