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Federal funds rate: Difference between revisions
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'''Topics to include''' | |||
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. | ||
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IORB = Interest Rate on Reserve Balances (currently 4.4%) [https://fred.stlouisfed.org/series/IORB] | IORB = Interest Rate on Reserve Balances (currently 4.4%) [https://fred.stlouisfed.org/series/IORB] | ||
'''Main Questions to answer''' | |||
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] | ||