Who Are the Current Main Players in the Federal Funds Market?

When the Federal Reserve conducts monetary policy, it announces a target for the “federal funds” interest rate. The implication is that if this specific rate rises or falls, it will affect other interest rates throughout the US economy; for example, like federal funds interest rate moves closely together with other key benchmark interest rates, like  the interest rate for overnight borrowing on AA-rated commercial paper. However, the identity of the parties borrowing and lending in the “federal funds” market has changed dramatically since the Great Recession. 

Read more here: http://conversableeconomist.blogspot.com/2020/01/who-are-current-main-players-in-federal.html

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