The target interest rate set by the Federal Reserve for overnight lending between banks. The most powerful policy lever in global finance.
The Fed Funds Rate is the anchor for all borrowing costs in the US economy. Every rate hike ripples through mortgages, credit cards, corporate loans, and global capital flows.
Rising rate = the Fed is fighting inflation, tightening conditions. Falling rate = the Fed is stimulating growth. Sudden cuts often signal crisis response.