This Commentary describes the evolution of the federal funds
market since the crisis.
While using federal funds
to purchase sterile needles or syringes for illegal drug injection is still banned, agencies may be able to use federal funds
to purchase HIV testing kits, to support syringe disposal services and provide naloxone to reverse the effects of an opioid overdose, among other services.
From early November there was a steady decline in the federal funds
rate from about 20 basis points to 17 basis points.
For many years, the federal funds
rate has been the main variable that the Federal Open Market Committee targets when it sets monetary policy.
Categories: June 16, 2010, Budget obligations, Congressional oversight, Data collection, Federal aid programs, Federal funds
, Financial management, Financial statement audits, Funds management, Health care services, Independent agencies, Private sector, Use of funds
Although the FOMC first lowered the federal funds
target rate in response to the crisis as early as September 2007, that target remained meaningfully above zero until December 2008.
This article uses the method of Carlson, Craig, and Melick (2005) to extract an implied risk-neutral probability density function over possible future federal funds
target rates from daily option prices.
The Federal Open Market Committee decided on November 1, 2005, to raise its target for the federal funds
rate 25 basis points, to 4 percent.
FOLLOWING THIS WARNING, our discussions turned to monetary policy--the setting of a target for the federal funds
5 billion a year to meet No Child requirements, about twice what the state currently receives in federal funds
According to the ALA, more than $1 billion in federal funds
has been distributed to libraries since 1998 through the education-rate (E-rate) discount program or in Library Services and Technology Act (LSTA) grants.
Ironically, the lack of oversight on private research and the lack of federal funds
to support basic science may make the former less likely and the latter more likely.