|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
|
Fed Funds Rate
The Fed Funds Rate is the interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. The Federal Reserve uses this rate to heat up or cool off the economy. In a recession, the Fed lowers rates to stimulate growth and spending. In a heated bull market, the Fed will raise rates to engineer a “soft landing."
|
||||||||||||||||||||||||||||||||||||||||||||||||||
