fed funds

Federal Funds

Money that a commercial bank in the United States has in excess of its reserve requirement. Banks deposit their federal funds at the Federal Reserve Bank of their district. Federal funds are available for lending to other banks on an overnight basis. The amount of federal funds is seen as a signal of the state of American credit markets, with more money available signaling loose credit and a less indicating the opposite. See also: Federal Funds Rate.

fed funds

References in periodicals archive ?
Analysts look for the Fed to hike the funds rate band 25 bps this month, and while the range of Fed funds estimates may widen from the high side, analysts expect the median dot to remain at 3 tightenings for 2018.
If you use the market-based probabilities of the number of Fed Funds rate hikes along with the current spread between the Fed Funds Rate and the year U.
We expect the Fed to increase the target range for Fed funds again.
For our sample excluding the financial crisis (1994-2007), we found that Fed funds surprises had a significant effect on the percent change in the S&P 500 index, but generally had little significant effect on Treasury yields and the trade-weighted dollar.
The report notes: "Unlike other traditional fixed income products, an increase in the Fed Funds rate will not necessarily cause falling [REIT) prices.
He said, 'Given my current outlook, I believe that it would be appropriate to wait until 2017 to initiate lift off and then raise the fed funds rate at about 2 percentage points per year.
Historically, the fed funds market has been a key financial market with major macroeconomic and monetary policy implications.
In September, when FOMC participants last estimated where they thought the "appropriate pace of policy firming" would leave the fed funds rate target at the end of next year, the answers were all over the lot.
After today s decision by the Federal Reserve to maintain the target Fed funds rate at zero to 25 basis points, Swiss Re s Chief Economist, Kurt Karl believes that with strong growth in the US economy virtually assured for the rest of the year, the Fed's forward guidance will at first become neutral and then begin hinting about a future tightening.
When that happens, there will be renewed interest in predicting where the fed funds rate will be in the future.
In late 2008, the Federal Open Market Committee (FOMC) reduced its target Fed Funds Rate to between 0 to 0.