Discussion Paper

Who’s Borrowing and Lending in the Fed Funds Market Today?

Abstract: The Federal Open Market Committee (FOMC) communicates the stance of monetary policy through a target range for the federal funds rate, which is the rate set in the market for uncollateralized short-term lending and borrowing of central bank reserves in the U.S. Since the global financial crisis, the market for federal funds has changed markedly. In this post, we take a closer look at who is currently trading in the federal funds market, as well as the reasons for their participation.

Keywords: fed funds; reserves; Interbank market; monetary policy; Federal Open Market Committee (FOMC);

JEL Classification: E5; G1; G2;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2023-10-10

Number: 20231010