the FED sets a target interest rate range and 4 main explicit interest rates:

1️⃣ Overnight Reverse Repo Rate (ON RRP)
2️⃣ Interest on Reserve Balances (IORB)
3️⃣ Discount Rate - also known as Lending Rate
4️⃣ Standing Repo Facility (SRF)

more on them later (keep reading 😁)

Illya Gerasymchuk 2025-07-31 09:48

the federal reserve does not set a single interest rate

instead, the FED sets a target interest rate range (the federal funds target range) alongside 4 main explicit interest rates