Federal Funds Rate remains near zero - Collegenews.: "Federal Funds Rate remains near zero


FOMC keeps rate at the same low level it has been since December 2008

by: Heather Linich



On Wednesday, the Federal Reserve announced it would keep the federal funds rate in the 0-.25% range. The federal funds rate is the rate at which banking institutions lend to each other overnight.
The lower the rate, the more money is available in the economy due to more of a willingness to borrow. The federal funds rate has been at this historic level since December of 2008, according to the Board of Governors of the Federal Reserve System.
In its statement, the Federal Open Market Committee (FOMC) said that while the economy is beginning to show signs of being on the mend, they will continue to keep the fed funds rate low. They also repeated a portion of their statement from a meeting earlier in the year that the current economic conditions are"