Participants in the federal funds market include commercial banks, thrift
institutions, agencies and branches of foreign banks in the United States,
federal agencies, and government securities dealers.
Many relatively small institutions that accumulate reserves in excess of
their requirements lend reserves overnight to money center and large
regional banks, and to foreign banks operating in the United States.
Federal agencies also lend idle funds in the federal funds market.
Other financial institutions serve as intermediaries in the market by
borrowing and lending funds on the same day, usually channeling funds from
relatively small to large depository institutions. Several broker firms
that neither borrow nor lend funds arrange transactions between lenders
and borrowers in order to earn commissions.
Federal Funds Rate History: For Historical Reference Only: Rates and
explanations provided by the Federal Reserve System. Accuracy of our
information is not guaranteed. Some rates are rounded due mid-month
changes or may contain typographical errors. If you find a
typographical error in the rate table let us know.