Profile Picture
Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-07-31 09:55

in the Federal Open Market Committee Meetings (FOMC), the Federal Reserve sets a target range - currently 4.25%–4.50%, and then it uses the ON RRP, IORB, discount rate and SRF to steer the average rate in the market

Thought Image
User

the rates define the interest rate corridor in the following manner: 1️⃣ Overnight Reverse Repo Rate - floor 2️⃣ Interest on Reserve Balances - supplementary floor 3️⃣ Discount Rate - ceiling 4️⃣ Standing Repo Facility - supplementary ceiling

Quoted Thought Image
πŸ’¬