The remaining eleven Presidents vote on a rotating basis. 2  As always, my remarks today reflect my own views and not necessarily those of my Federal Reserve colleagues. I thank Seth Carpenter for excellent assistance. BIS Review 21/2005  1  obscure short-term interest rate, the federal funds rate.
For example, the FOMC's current target for the federal funds rate, as established at its meeting last week, is 2.75 percent. What is the federal funds rate (often called the funds rate for short)? The funds rate is the interest rate prevailing in the market for borrowing and lending reserve balances, also called the federal funds market.