federal funds rate

Tag: federal funds rate

London Interbank Offered Rate (Libor) Controversy

London Interbank Offered Rate (Libor) Controversy (June 2008) Presently, there are two issues regarding the London Interbank Offered Rate (LIBOR). First, dollar Libor quotes are considered too high compared to the federal funds rate. Second, elevated Libor quotes are considered too low compared to other market-based interest rates. British Bankers’ Association (BBA) Reaction (bba.org.uk) The

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Federal Funds Rate Definition

See Also: Interest Rate Swaps LIBOR Interest Rate Definition Interest Rate Risk Prime Lending Rate Libor versus Prime Rate Interest Rate in Selecting Loan Federal Funds Rate Definition The federal funds rate definition, or fed funds rate, is the target interest rate for overnight lending and borrowing transactions between banks. The Federals Open-Market Committee (FOMC)

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Basis Points

See Also: Accounts Payable Margin vs Markup Collateralized Debt Obligations Are You Collecting Business Data? Benchmarking A basis point is one hundredth of a percentage point. A single basis point would look like this: 0.01%. Fifty basis points is a half a percentage point: 0.50%. 100 basis points equal one percentage point: 1.00%. When To Use Basis

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What Will the Fed Do?

The Federal Open Market Committee is expected to announce a third consecutive cut in the federal funds rate today. Equities were up early, but have fallen to near their open in advance of the announcement which will come later today. What will the Fed do? What Will the Fed Do? It would seem that the

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Fed Lowers Rate Target – Time to Pop the Cork?

Yesterday afternoon, the Federal Open Market Committee did what nobody expected. The Fed lowers rate target. If you paid any attention to published reports, then they acknowledged what was already priced in by the futures markets and lowered its target for the federal funds rate by 50 basis points to 4.75%. While US equity markets

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