What Is the Fed Funds Rate?

There's been a lot of talk of when - and even if - the U.S. Federal Reserve will raise interest rates soon. But the mechanism for which the Fed raises rates, the so-called "Fed funds rate," is hardly well-understood. So, what is the Fed funds rate? And how does the Fed set interest rates? We look at that here... Tags: bank reserves , fed funds , Fed funds rate , fed funds rate today , global financial crisis , how the fed funds rate works , overnight rate , U.S. federal reserve , what are bank reserves , what is the fed funds rate , what is the prime rate , who sets the federal funds rate To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post What Is the Fed Funds Rate? appeared first on Money Morning - We Make Investing Profitable .