Fed acts to enforce benchmark target

The Federal Reserve has moved to correct the disparity between its federal funds target and actual rates by raising the amount of interest paid on excess reserves held at the central bank.

As Central Bank News reported on 30 October, the effective federal funds rate, which represents the cost at which the central bank wants banks to lend overnight, has veered wildly from the Fed's target since the 8 October rate cut. Such a divergence is unprecedented and raises the issue of whether Federal Open

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.