The Latest Breaking News from Fed Funds Rate

The CME’s physical lumber futures contract for delivery in 2025 has been moving higher and is approaching a critical technical resistance level in late 2024.

The U.S. Federal Reserve conducts monetary policy using the short-term Fed Funds Rate as its most effective tool. Meanwhile, longer-term interest rates are a function of supply and demand and market sentiment.

In 2023, the long bond futures fell to their lowest level since 2007 as the Fed fought inflation with a hawkish monetary policy path. The long bond futures recovered after reaching a low in October but have not broken out of the bearish trend intact since the 2020 high.

The long bond futures reached a sixteen-year low in October 2023. Rising short-term Fed Funds rates and quantitative tightening caused bonds to fall and rates to rise, choking economic growth. Higher rates weighed on the stock market and other asset classes over the past months. However, bonds have recovered since…

The U.S. central bank has taken the highest inflation in four decades seriously, increasing the short-term Fed Funds Rate by 500 basis points from March 2022 through May 2023. The Fed has also tightened credit for further maturities via quantitative tightening. While the consensus over the past year supported rate…

At its June 14-15 meeting, the Federal Reserve decided to hike its Fed Funds Rate by 75 basis points, the largest single hike since 1994, to 1.5-1.75% in order to tame inflation.

What Is Quantitative Tightening?The main job of a central bank, like the Federal Reserve, is to keep the economy strong through maximum employment and stable prices. It does this by managing the Fed Funds Rate, which it sets at its Federal Open Market Committee meetings. This effectively raises or ...

What Is the Fed Funds Rate?The federal funds rate is the rate of interest that banks use to lend money to each other. This rate is controlled by the Federal Reserve and can be adjusted through changing market conditions. For instance, the Fed may raise or lower the fed funds…