Federal Reserve

Tag: Federal Reserve

The Fed Beige Book

See Also: Economic Indicators Balance of Payments Supply and Demand Elasticity Stagflation What are the Twin Deficits? Federal Reserve Beige Book The Fed beige book is more formally known as the “Summary of Commentary on Current Economic Conditions.” The beige book describes economic conditions in each of the twelve Federal Reserve Bank districts. The beige

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Fiat Money

See Also: Cash Cycle Categories of Banks What are the 7 C’s of banking? Currency Exchange Rates Currency Swap Fiat Money Definition The definition of fiat money is currency made into legal tender. Furthermore, a governmental entity backs this tender to ensure its legitimacy. Fiat Money Explained Normally, fiat money is issued for a government

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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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Economic Drivers to Watch

Recently I heard Bill Sherrill speak regarding his economic forecast for 2013 and the economic drivers impacting that forecast. For those of you who don’t know Bill, he is the Founder of the Wolff Center for Entrepreneurship and twice appointed Governor of the U.S. Federal Reserve Board. In his presentation, Mr. Sherrill presented the best

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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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