Monetary Policy and the Federal Reserve: Current Policy and Conditions

Normally, the Fed conducts monetary policy by setting a target for the federal funds rate – the rate at which banks borrow and lend reserves on an overnight basis. It meets its target through open market operations, financial transactions traditionally involving U.S. Treasury securities. Beginning in 2007, the federal funds target was reduced from 5.25%… Continue Reading Monetary Policy and the Federal Reserve: Current Policy and Conditions