Like other central banks, the Federal Reserve controls only a very short-term interest rate on borrowing reserve funds between depositories, the overnight federal funds rate. However, theory and empirical evidence indicate that longer-term interest rates and conditions in other financial markets matter most for the  BIS Review 2/2002  1  transmission of monetary policy to the economy.
Stanley Fischer: Education, ‘aliya, and the young generation in Israel Remarks by Professor Stanley Fischer, Governor of the Bank of Israel, at the 2007 HIAS Scholarship Award Ceremony, Jerusalem, 28 December 2007.