in the Federal Open Market Committee Meetings (FOMC), the Federal Reserve sets a target range - currently 4.25%β4.50%, and then it uses the ON RRP, IORB, discount rate and SRF to steer the average rate in the market
the rates define the interest rate corridor in the following manner:
1οΈβ£ Overnight Reverse Repo Rate - floor
2οΈβ£ Interest on Reserve Balances - supplementary floor
3οΈβ£ Discount Rate - ceiling
4οΈβ£ Standing Repo Facility - supplementary ceiling