Federal Funds Rate

Description

The Federal Funds Rate is the target interest rate set by the Federal Reserve for overnight lending between banks. It is the primary tool of US monetary policy and the most influential interest rate globally, affecting borrowing costs, asset valuations, and capital flows across all markets.

Key risks

policy-error

This risk may negatively affect the instrument’s performance under certain market conditions.

political-pressure

This risk may negatively affect the instrument’s performance under certain market conditions.

The list of risks is not exhaustive and highlights the most material structural and market-related factors.

Portfolio role & behavior

Economic role

benchmarkregime-signal

Behavior

macro-fundamental

The information provided is for analytical and informational purposes only and does not constitute investment advice.

Any decisions are made independently by the user and at their own risk.

For details, see legal terms.