Federal Funds Rate Definition
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effective federal funds rateFederal Reserve Economic Data | FRED | St. Louis Fed
•Federal funds rate is the central interest rate in the U.S. financial market
87% Informative
The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate.
The effective federal funds rate is essentially determined by the market but is influenced by the Federal Reserve through open market operations.
The Federal Reserve decreases liquidity by selling government bonds, thereby raising the rate.
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