Federal Reserve Interest Rate Decision
The Federal Reserve Interest Rate Decision is a decision made by the Federal Reserve Board of Governors that sets the target for the federal funds rate. This rate is the interest rate at which banks and other depository institutions lend balances held at the Federal Reserve to other depository institutions overnight. The Federal Reserve Board of Governors meets eight times a year to review economic and financial conditions and to determine the appropriate stance of monetary policy. The Federal Reserve Board of Governors sets a target for the federal funds rate, which is the rate at which banks and other depository institutions lend balances held at the Federal Reserve to other depository institutions overnight.
History of the Federal Reserve Interest Rate Decision
The Federal Reserve Interest Rate Decision has been a part of the Federal Reserve System since its inception in 1913. The Federal Reserve System was created to provide a more stable and flexible monetary and financial system. The Federal Reserve Board of Governors is responsible for setting the target for the federal funds rate. The Federal Reserve Board of Governors meets eight times a year to review economic and financial conditions and to determine the appropriate stance of monetary policy. The Federal Reserve Board of Governors sets a target for the federal funds rate, which is the rate at which banks and other depository institutions lend balances held at the Federal Reserve to other depository institutions overnight.
Table of Comparisons
| Year | Federal Funds Rate |
|---|---|
| 2020 | 0.00-0.25% |
| 2019 | 2.25-2.50% |
| 2018 | 1.75-2.00% |
| 2017 | 1.00-1.25% |
Summary
The Federal Reserve Interest Rate Decision is a decision made by the Federal Reserve Board of Governors that sets the target for the federal funds rate. This rate is the interest rate at which banks and other depository institutions lend balances held at the Federal Reserve to other depository institutions overnight. The Federal Reserve Board of Governors meets eight times a year to review economic and financial conditions and to determine the appropriate stance of monetary policy. The Federal Reserve Board of Governors sets a target for the federal funds rate, which is the rate at which banks and other depository institutions lend balances held at the Federal Reserve to other depository institutions overnight. For more information about the Federal Reserve Interest Rate Decision, please visit the Federal Reserve website or consult with a financial advisor.
See Also
- Federal Reserve System
- Monetary Policy
- Federal Funds Rate
- Interest Rates
- Inflation
- Unemployment
- Gross Domestic Product
- Economic Growth
- Monetary Policy Tools
- Federal Open Market Committee
