Federal Funds Rate is the interest rate, which is used in transactions between banks - members of the Federal Reserve System. The Federal Funds Rate is regulated by the Committee on Open Market.
High interest rates reduce the growth of consumer lending and stimulate the growth of savings, which leads to slower economic growth. The growth of rates usually leads to an increase in capital inflows and the growth of the national currency in the medium term, however, if growth rates are not based on high rates of economic growth, it could lead to economic stagnation and negative impact on the currency markets in the long term.
- Release Frequency: eight times a year.
- Release Schedule: 14:15 EST, usually on Tuesdays.
- Source: Federal Reserve.