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General TradingF
Federal Funds Rate
The Federal Funds Rate is the interest rate at which U.S. banks lend reserve balances to each other overnight. Set by the Federal Reserve's FOMC, it is the primary tool for monetary policy and influences borrowing costs, currency values, and asset prices across global markets.
Example
“When the Fed raised the Federal Funds Rate by 75 basis points, mortgage rates spiked, the dollar strengthened, and growth stocks sold off sharply as borrowing costs increased across the economy.”