Illya Gerasymchuk
Entrepreneur / Engineer
so how does the FED currently targets an interest rate range between 4.25%-4.50%?
let's consolidate everything with an example using current, real-world data
SRF has been introduced in 2021, due to occasional spikes of short-term funding rates outside of the corridor
this is because banks avoid using the discount rate - as that is often seen as a sign of financial distress by the broader market