What Does the “Federal Funds Rate,” which the Fed Targets, still Measure? Not Much, Mostly a Bizarre Arbitrage Trade

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What Does the “Federal Funds Rate,” which the Fed Targets, still Measure? Not Much, Mostly a Bizarre Arbitrage Trade

wolfstreet.com/2025/11/01/what-does-the-federal-funds-rate-which-the-fed-targets-still-measure-not-much-mostly-a-bizarre-arbitrage-trade

“The FOMC should modernize the target rate”: Dallas Fed president Lorie Logan.
By Wolf Richter for WOLF STREET.
The Fed has for decades used the “federal funds rate” as the headline target for its key policy rate. The “effective federal funds rate” (EFFR) is a market rate observed in the…

This story appeared on wolfstreet.com, 2025-11-01 20:03:56.