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Federal funds rate: Difference between revisions
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(Created page with "<span style="color:#0000FF">Article to be written </span> <span style="color:#0000FF">Topics to include </span> The Federal Funds Rate is given in a range currently in a rang...") |
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<span style="color:#0000FF">Article to be written </span> | <span style="color:#0000FF">Article to be written </span> | ||
<span style="color:#0000FF">Topics to include </span> | <span style="color:#0000FF">Topics to include </span> | ||
The Federal Funds Rate is given in a range currently in a range between 4.25-4.5. | The Federal Funds Rate is given in a range currently in a range between 4.25-4.5. | ||
Major Facilities: ON RRP = Overnight Reverse Repurchase Agreement (currently 4.3%) which serves as the floor to lower interest rates as eligible institutions can park their money there [https://www.newyorkfed.org/markets/rrp_faq] | Major Facilities: ON RRP = Overnight Reverse Repurchase Agreement (currently 4.3%) which serves as the floor to lower interest rates as eligible institutions can park their money there [https://www.newyorkfed.org/markets/rrp_faq] | ||
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<span style="color:#0000FF">Main Questions to answer </span> | <span style="color:#0000FF">Main Questions to answer </span> | ||
While the spread between the ON RRP and EFFR makes sense i don't understand the spread to IORB. Are there limits how much institutions can provide to it? | While the spread between the ON RRP and EFFR makes sense i don't understand the spread to IORB. Are there limits how much institutions can provide to it? | ||
More potentially helpful materials (did not read all of it) [https://www.federalreserve.gov/monetarypolicy/iorb-faqs.htm] [https://libertystreeteconomics.newyorkfed.org/2022/01/how-the-fed-adjusts-the-fed-funds-rate-within-its-target-range/] [https://www.newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/repo-reverse-repo-agreements] | More potentially helpful materials (did not read all of it) [https://www.federalreserve.gov/monetarypolicy/iorb-faqs.htm] [https://libertystreeteconomics.newyorkfed.org/2022/01/how-the-fed-adjusts-the-fed-funds-rate-within-its-target-range/] [https://www.newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/repo-reverse-repo-agreements] | ||