The rate of interest charged for the use of federal funds. Chicago Board of Trade glossary
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The rate for which overnight federal funds are traded. American Banker Glossary
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The interest rate that banks with excess reserves at a Federal Reserve ( Federal Reserve System) district bank charge other banks that need overnight loans. The Fed funds rate , as it is called, often points to the direction of US interest rates. The most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate. Bloomberg Financial Dictionary
Financial and business terms. 2012.