RIP Federal Funds Market, 1928-2023

Published on November 13, 2023 by Premium

The Federal Funds market has been in an undead state for over a decade, but may now finally wither away and allow SOFR to become the official policy rate. Almost all lending in the funds market is from Federal Home Loan Banks, who are ineligible for interest on reserves and lend in the funds market to earn a return on their cash. Potential new regulations are likely to significantly shrink the fed funds market by […]

Site Footer