See federal funds. American Banker Glossary
* * *
Reserve balances deposited at the Federal Reserve Bank by US commercial banks. These funds can be lent out to other member banks to meet short-term reserve requirements and the rate at which they are lent is known as the Fed Funds rate. This is one of two key US interest rates, the other being the discount rate. Fed Funds can also refer to the money used by the Federal Reserve to pay for its purchases of government securities.
► See also Discount Rate, Federal Reserve System.
* * *
fed funds UK US noun [plural] FINANCE, GOVERNMENT
► ABBREVIATION for FEDERAL FUNDS(Cf. ↑federal funds)
Financial and business terms. 2012.