The fed funds rate is the interest rate that major U.S. banks charge each other to borrow money on a short-term basis. Usually, this is for loan terms of one day (overnight borrowing) to one week. The Federal Reserve sets a target rate, and adds or drains reserves to the money supply to reach it. Although the fed funds rate is a short-term rate, a change in its target level by the Fed sends a strong message to the bond market of its intent to fight inflation. As a result, long-term interest rates are also affected by a change in the target rate.
The interest rate at which U.S. banks lend to one another their excess reserves held on deposit at the U.S. Federal Reserve. Source: econterms
What the Fed charges banks to borrow money from it.
The rate banks charge each other on overnight loans of reserves held at the FRB. See: FED Funds.
What the U.S. Federal Reserve charges banks to borrow money from it overnight.
The U.S. equivalent of the bank rate. The U.S. central bank is the Federal Reserve Board and this is the rate for "funds at the Fed," which are mainly used to cover deficiencies in legal reserves.
