how can the FED even set market-wide rates? 🤔 after all - there is no single rate that the whole market unanimously uses different types of lending have different rates in the market, as it's a (somewhat) open market

Illya Gerasymchuk 2025-07-31 09:39

how does the Federal Reserve set interest rates? some think that they define a single rate - namely the overnight lending rate - i.e. the rate at which the banks lend to each other overnight but that's not the case ❌