In the United States, what is the term for the interest rate at which depository institutions lend reserve balances to other depository institutions overnight?
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Federal funds rate
In the US, this rate is set by the Federal Open Market Committee (FOMC). It is a key tool for monetary policy, as it influences other interest rates throughout the economy, such as mortgages and credit cards.
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- What is the U.S. term for the interest rate banks charge each other for overnight loans of reserve balances?