In the past year, the Federal Open Market Committee has thrice voted to lower its key federal funds rate target: from 6% to 5.75% in July, to 5.5% in December then to 5% in January. The funds rate - the interest rate paid on overnight loans of reserves between banks - represents the key information guiding open-market operations for control of bank reserves.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-04, pp. 02-04, 04.01.1996.