Fed Funds

Traders can buy and sell futures contracts on the fed funds rate to hedge against interest rate risk.  Traders will buy the fed fund futures if they believe the fed will lower the federal funds rate and visa versa if they believe the fed will increase the fed

The speaker explains the meaning of the fed funds rate and how the federal reserve manipulates it to stay near their target rate.

This tutorial provides an in-depth view into the fed funds rate.  The speaker goes into discussing what a depository institution is, reserve requirements, reserve balances, target & effective fed funds rate, and talks about fed funds rate as a tool of fighting inflation<

This video explains what the federal funds rate is and how the Feds open market operations affect this rate.  The federal funds rate is the rate at which banks lend to each other.

Suze Orman talks about the fed funds rate and how lowering this rate will not help lower rates on adjustable rate mortages.  She suggests that lowering the fed funds rate will not help existing mortgage holders since rates will be res

Overview of the Federal Fund Rate

What are Federal Funds?

All commercial and thrift banks are required to keep a certain percentage of deposits, as cash, at their district Federal Reserve Bank.