Tag: monetary policy

  • How Does the Fed Funds Rate Work, and What Is Its Impact?

    How Does the Fed Funds Rate Work, and What Is Its Impact?

    The Federal Funds Rate (FFR), commonly referred to as the fed funds rate, denotes the mean interest rate that banks pay for short-term borrowing in the federal funds market. Its significance lies in its impact on various interest rates, including those on credit cards, mortgages, and bank loans, as well as on the value of…