IORB is interest rate on reserve balances. ON RRP is overnight reverse repurchase agreement. Source: Figure 5 in Jane Ihrig and Scott Wolla (2022), “Let’s Close the Gap: Updating the Textbook Treatment of Monetary Policy,” Journal of Economic Education, vol. 53 (3), pp. 232–49. 7  8  9  Summary of Fed’s Toolbox Policy Implementation Tools  Administered Rates  1.
Interest on reserve balances (IORB) 2. Overnight Reverse Repurchase Agreement Facility (ON RRP) 3. Discount window 4. Open market operations  1. 2. IORB rate ON RRP rate  3. Discount rate  10  11  12  Conclusions • The Fed sets the target range for the federal funds rate.