The US Federal Reserve has cut its key interest rate to the lowest level on record.
In the United States, the
federal funds rate is the interest rate at which private
depository institutions (mostly banks) lend balances (federal funds) at the
Federal Reserve to other depository institutions, usually overnight.
Changing the target rate is one form of open market operations that the Chairman of the Federal Reserve uses to regulate the supply of money in the U.S. economy.
