Fed Funds Rate vs. S&P500 Index Prices Federal Reserve Fed Funds Interest Rates vs Stock Prices |
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February 28, 2016: In the United States, the federal funds rate1
is the interest rate at which depository institutions actively trade
balances held at the Federal Reserve, called federal funds, with each
other, usually overnight, on an uncollateralized basis. Institutions
with surplus balances in their accounts lend those balances to
institutions in need of larger balances. The federal funds rate is an
important benchmark in financial markets.
The current target rate for the Fed Funds Interest Rate2: On December 17, 2015 the Federal Reserve Open Market Committee increased the Federal Funds Target Rate by 0.25% to a rage of 0.25% to 0.50%. |
Note 1. Source: KirkLindstrom.com private data in Excel
and http://en.wikipedia.org/wiki/Federal_funds_rate The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate. The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule. Note 2. Open Market Operations - History of Fed Funds Rate Changes |
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30-Year Conventional Mortgage Rates | 30-Year FHA Mortgage Rates |
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