More on the Federal Funds Rate:
Don’t be mislead by my posting heading. The article, linked below, gives a nice explanation of the difference between the “rate on required reserves” and the “rate on excess reserves”. Read down into the article a couple of paragraphs. Could one say the functioning of the U.S. economy is a bit “murky?” To the average “man on the street,” we sure need a detailed guidebook or more accurately our own personal human economist to keep us “up” on the current shenanigans of the U.S. and world economic conditions.
Here’s the article’s source link: ThinkstockCredit card companies could be some of the best performing large cap stocks come 2016. Visa Inc. (NYSE: V), American Express Co. (NYSE: AXP), MasterCard Inc. (NYSE: MA) and Discover Financial Services (NYSE: DFS) should all be on investors’ radar for the coming year. Here’s why. When the Federal Reserve raised its target rate […]
I previously made a posting entitled: What’s the difference between the Federal (Fed) funds rate and and the discount rate? The above article from 24/7 Wall St. gives a more detailed explanation of the Federal funds rate which is a very important Federal Reserve Bank “tool.”