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 ?
Fed funds futures rallied on the ISM data and the drop on Wall Street as the market prices in more Fed easing.
The target for the fed funds rate was adjusted down by 25 basis points (bps) to 2-2.25 percent.
Summary: New York [USA], Aug 1 (ANI): The cut in US Fed funds rate is credit negative for American banks, applying renewed pressure on net interest margins (NIMs) and profitability that could stimulate further consolidation of the sector, Moody's Analytics said on Thursday.
The Fed Funds rate, the differential between EM and developed-market (DM) GDP growth, global risk appetite (proxied by the VIX measure of equity market volatility) and the US dollar are key global drivers of EM capital flows.
That's what the Federal Reserve is attempting to do as the fed funds rate inches closer to the top of the central bank's target range.
Abstract This paper proposes a new framework that identifies a threshold between the fed funds rate and the 10-year Treasury yield and, when the threshold is breached, the risk of a recession in the near future is significant.
* Before the 2007-09 financial crisis, the Fed's operating framework for monetary policy reflected a banking system in which the scarcity of reserves meant that small changes in reserves would affect fed funds rates.
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.S.
This means Fed Funds trade at 2.50 per cent and three month Libor trades at least three per cent.
We expect the Fed to increase the target range for Fed funds again.
In December 2016, the Federal Reserve raised the Fed funds rate 0.25 percent, beginning what many Fed watchers believe will be a series of rate hikes in 2017.
1) 1993-1995, when Fed Funds increased to 6.1% from 2.9% REITs with dividends gained 21%