Federal Funds Rate definition: Copy, customize, and use instant
Introduction
The term "Federal Funds Rate" refers to the interest rate at which depository institutions, such as banks and credit unions, lend reserve balances to one another overnight. It is essential for influencing monetary policy, affecting interest rates across the economy, and managing inflation and economic growth.
Below are various examples of how "Federal Funds Rate" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Federal Funds Rate" as the overnight interbank lending rate
This definition ties "Federal Funds Rate" to overnight loans between banks.
"Federal Funds Rate" means the interest rate at which depository institutions lend reserve balances to other depository institutions on an overnight basis, as determined by market conditions.
Definition of "Federal Funds Rate" as a monetary policy tool
This definition connects "Federal Funds Rate" to its role in implementing monetary policy.
"Federal Funds Rate" refers to the benchmark interest rate set by the Federal Reserve to influence monetary policy and regulate economic activity, including controlling inflation and unemployment.
Definition of "Federal Funds Rate" as a benchmark for interest rates
This definition links "Federal Funds Rate" to its function as a reference rate.
"Federal Funds Rate" means the key benchmark interest rate that guides the rates for various financial instruments, including loans, mortgages, and savings accounts.
Definition of "Federal Funds Rate" as the target rate for reserve balances
This definition applies "Federal Funds Rate" to its focus on managing reserve balances.
"Federal Funds Rate" refers to the target interest rate set by the Federal Open Market Committee (FOMC) for lending and borrowing reserve balances between financial institutions.
Definition of "Federal Funds Rate" as the cost of borrowing reserves
This definition ties "Federal Funds Rate" to the cost financial institutions pay to borrow reserves.
"Federal Funds Rate" means the interest rate charged by one financial institution to another for borrowing reserve balances, typically to meet regulatory requirements or manage liquidity.
Definition of "Federal Funds Rate" as an anchor for interest rate policies
This definition ties "Federal Funds Rate" to its role as the anchor for monetary policy decisions.
"Federal Funds Rate" means the key interest rate that serves as the foundation for the Federal Reserve’s monetary policy, affecting all other interest rates in the economy.
Definition of "Federal Funds Rate" as a driver of economic growth
This definition connects "Federal Funds Rate" to its impact on stimulating or slowing economic growth.
"Federal Funds Rate" refers to the interest rate adjusted by the Federal Reserve to either stimulate economic growth during downturns or cool the economy during inflationary periods.
Definition of "Federal Funds Rate" as the rate for overnight liquidity
This definition links "Federal Funds Rate" to its focus on overnight liquidity management.
"Federal Funds Rate" means the interest rate applied to overnight loans between depository institutions to ensure adequate liquidity and reserve compliance.
Definition of "Federal Funds Rate" as a short-term monetary tool
This definition applies "Federal Funds Rate" to its function as a short-term tool for monetary adjustments.
"Federal Funds Rate" refers to the short-term interest rate used by the Federal Reserve to make immediate adjustments to the economy’s monetary supply.
Definition of "Federal Funds Rate" as a predictor of economic conditions
This definition ties "Federal Funds Rate" to its role as an economic indicator.
"Federal Funds Rate" means the interest rate closely watched as a predictor of economic conditions, signaling the Federal Reserve’s outlook on inflation and growth.
Definition of "Federal Funds Rate" as a rate for reserve balancing
This definition connects "Federal Funds Rate" to its role in balancing reserve requirements among banks.
"Federal Funds Rate" refers to the rate used by depository institutions to lend or borrow reserve balances, helping maintain the Federal Reserve’s required reserves.
Definition of "Federal Funds Rate" as a mechanism for controlling money supply
This definition links "Federal Funds Rate" to its influence on money supply management.
"Federal Funds Rate" means the interest rate that enables the Federal Reserve to control the money supply by making borrowing more or less expensive for financial institutions.
Definition of "Federal Funds Rate" as a stabilizer for financial markets
This definition applies "Federal Funds Rate" to its role in maintaining market stability.
"Federal Funds Rate" refers to the rate adjusted by the Federal Reserve to stabilize financial markets by influencing lending, borrowing, and liquidity.
Definition of "Federal Funds Rate" as a determinant of credit accessibility
This definition ties "Federal Funds Rate" to its impact on credit availability.
"Federal Funds Rate" means the rate that determines the cost of credit for businesses and consumers, affecting the overall accessibility of loans and mortgages.
Definition of "Federal Funds Rate" as a tool for influencing global markets
This definition connects "Federal Funds Rate" to its broader influence on international financial markets.
"Federal Funds Rate" refers to the interest rate that influences global financial markets by impacting international capital flows and exchange rates.
Definition of "Federal Funds Rate" as a benchmark for monetary adjustments
This definition ties "Federal Funds Rate" to its role in guiding monetary policy changes.
"Federal Funds Rate" means the benchmark interest rate used by the Federal Reserve to implement monetary adjustments and influence overall economic conditions.
Definition of "Federal Funds Rate" as a rate for stabilizing inflation
This definition connects "Federal Funds Rate" to its purpose in controlling inflation.
"Federal Funds Rate" refers to the interest rate that helps stabilize inflation by making borrowing more expensive during inflationary periods or cheaper during deflationary periods.
Definition of "Federal Funds Rate" as a determinant of lending practices
This definition links "Federal Funds Rate" to its influence on lending behavior.
"Federal Funds Rate" means the interest rate that impacts banks' lending practices, shaping the cost of credit for businesses and individuals.
Definition of "Federal Funds Rate" as a liquidity balancing tool
This definition applies "Federal Funds Rate" to its function in managing liquidity in the banking system.
"Federal Funds Rate" refers to the rate used by financial institutions to lend or borrow overnight funds, ensuring adequate liquidity to meet reserve requirements.
Definition of "Federal Funds Rate" as a signaling mechanism for financial institutions
This definition ties "Federal Funds Rate" to its role in signaling monetary policy direction.
"Federal Funds Rate" means the interest rate that acts as a signaling mechanism, guiding financial institutions’ expectations for future monetary policies.
Definition of "Federal Funds Rate" as a short-term economic indicator
This definition connects "Federal Funds Rate" to its use as an indicator of economic activity.
"Federal Funds Rate" refers to the short-term interest rate that reflects the Federal Reserve’s stance on current economic conditions, including growth and inflation.
Definition of "Federal Funds Rate" as a key interest rate for reserve management
This definition links "Federal Funds Rate" to its role in managing reserve balances.
"Federal Funds Rate" means the primary interest rate at which banks borrow or lend reserve balances overnight to ensure compliance with reserve requirements.
Definition of "Federal Funds Rate" as a monetary strategy component
This definition applies "Federal Funds Rate" to its role in broader monetary strategies.
"Federal Funds Rate" refers to the component of monetary strategy used by the Federal Reserve to manage economic growth, employment, and inflation targets.
Definition of "Federal Funds Rate" as a basis for economic forecasting
This definition ties "Federal Funds Rate" to its role in economic predictions.
"Federal Funds Rate" means the interest rate used as a basis for forecasting economic trends, such as borrowing costs and investment activities.
Definition of "Federal Funds Rate" as a determinant of interbank competitiveness
This definition connects "Federal Funds Rate" to its impact on interbank operations.
"Federal Funds Rate" refers to the rate that influences competitiveness among banks in the interbank lending market by setting a standardized cost for borrowing reserves.
Definition of "Federal Funds Rate" as a central bank policy instrument
This definition ties "Federal Funds Rate" to its use by the central bank to implement monetary policy.
"Federal Funds Rate" means the policy instrument used by the Federal Reserve to influence economic activity by adjusting the cost of borrowing for financial institutions.
Definition of "Federal Funds Rate" as a determinant of economic liquidity
This definition connects "Federal Funds Rate" to its effect on the liquidity available in the economy.
"Federal Funds Rate" refers to the interest rate that determines the overall liquidity in the financial system by impacting reserve balances and credit availability.
Definition of "Federal Funds Rate" as a regulator of short-term credit
This definition links "Federal Funds Rate" to its regulation of short-term credit availability.
"Federal Funds Rate" means the rate that regulates the availability and cost of short-term credit for financial institutions, influencing broader economic conditions.
Definition of "Federal Funds Rate" as a stabilizer for interest rate volatility
This definition applies "Federal Funds Rate" to its role in reducing volatility in interest rates.
"Federal Funds Rate" refers to the rate used by the Federal Reserve to stabilize interest rate fluctuations and maintain consistency in financial markets.
Definition of "Federal Funds Rate" as a basis for financial derivatives pricing
This definition ties "Federal Funds Rate" to its influence on derivative products.
"Federal Funds Rate" means the reference interest rate used to price financial derivatives, such as swaps and futures, which are linked to short-term borrowing costs.
Definition of "Federal Funds Rate" as a guide for fiscal policy impacts
This definition connects "Federal Funds Rate" to its indirect effects on fiscal policy.
"Federal Funds Rate" refers to the rate that indirectly impacts fiscal policy by influencing government borrowing costs and public spending patterns.
Definition of "Federal Funds Rate" as a reflection of market liquidity demand
This definition links "Federal Funds Rate" to its responsiveness to market demand for liquidity.
"Federal Funds Rate" means the rate that reflects the demand for liquidity in the interbank market, driven by reserve needs and monetary conditions.
Definition of "Federal Funds Rate" as a mechanism for maintaining price stability
This definition applies "Federal Funds Rate" to its role in supporting stable prices.
"Federal Funds Rate" refers to the rate used by the Federal Reserve to maintain price stability by controlling inflation and influencing aggregate demand.
Definition of "Federal Funds Rate" as a benchmark for savings and loan rates
This definition ties "Federal Funds Rate" to its impact on consumer interest rates.
"Federal Funds Rate" means the benchmark rate that affects the interest rates on savings accounts, mortgages, and personal loans, shaping consumer financial decisions.
Definition of "Federal Funds Rate" as a tool for managing economic overheating
This definition connects "Federal Funds Rate" to its role in cooling an overheating economy.
"Federal Funds Rate" refers to the interest rate increased by the Federal Reserve to reduce excess demand and prevent inflation during periods of rapid economic growth.
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