Fed funds rate

The fed funds rate is the target range for overnight lending between US banks, the one rate the Fed sets directly. It anchors the short end of the yield curve while the market sets the long end, and the odds of its next move are a live price before every meeting.

Go on

In MochaLearnSee how the Fed moves US markets in MochaLearn
  • Yield curveThe yield curve is the line of Treasury yields from three months to thirty years, normally sloping up because longer…
  • CME FedWatchCME FedWatch turns futures on the overnight rate into a probability for each outcome at every Fed meeting. It is what…
  • 2-year Treasury yieldThe two-year Treasury yield is the bond market's bet on where the Fed will hold rates over the next two years, so it…
  • Dot plotThe dot plot is the chart of where each Fed official expects the policy rate to be over the next few years, one dot…
  • FOMCThe FOMC is the Federal Open Market Committee, the twelve voters inside the Fed who set the policy rate at eight…
  • Market correctionA correction is a fall of 10% to 20% from a recent high, a convention, not a rule. Most start on a rate repricing or a…

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