What does the Benchmark rate refer to with the Federal Reserve?

Discussion in 'Ask any question!' started by Jticker1, Dec 17, 2021.

  1. Jticker1

    Jticker1 New Member

    Joined:
    Oct 9, 2021
    Messages:
    6
    Likes Received:
    0
    Is this just another way of saying the Federal Funds Rate?
     
  2. Stoch

    Stoch Well-Known Member

    Joined:
    Jan 5, 2019
    Messages:
    180
    Likes Received:
    83
    Yes, the fed set the benchmark rate at their meetings which is a rate used by banks to lend and borrow with each other. The public interest rate is market driven and adjusts daily (ie. the 2year, 10 year, 30 year rate etc.) but is influenced by the benchmark rate. If the benchmark rate goes up, one would expect the other rates to increase as well.
     
    Jticker1 likes this.
  3. Jticker1

    Jticker1 New Member

    Joined:
    Oct 9, 2021
    Messages:
    6
    Likes Received:
    0
    Great! Thanks for clarifying for me!
     

Share This Page