The daily average effective federal funds rate typically remains close to target. Since the beginning of 2000, the average absolute deviation of the effective rate from the intended rate has been about 7 basis points (bp); the effective rate was within 5 bp of the intended rate for around 60% of the observations. Nonetheless, misses of 50 bp or more are not uncommon.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-11, pp. 04-05, 11.01.2002.