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Federal Reserve Official Calls for Broader Policy Rate Target

Hammack states market focus has moved away from the Fed Funds Rate, suggesting consideration of an expanded benchmark for monetary policy guidance.

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Terms & Concepts
  • Fed Funds Rate: The interest rate at which depository institutions lend reserve balances to other banks overnight, set by the U.S. Federal Reserve.
  • Policy Rate Target: A benchmark interest rate used by a central bank to guide economic activity and monetary policy decisions.