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1) In today’s ample-reserves floor system, the effective federal funds rate (EFFR) usually trades a few basis points above IORB.
2) ON RRP primarily extends the policy floor to eligible nonbank cash investors like stock market funds.
3) In the pre-2008 corridor system, the NY Fed mostly steered the funds rate by fine-tuning reserve supply with daily OMOs.
4) Banks will usually lend reserves overnight at a rate lower than IORB because fed funds are unsecured.
5) With ample reserves, adjusting administered rates (IORB/ON RRP) is the main way to keep EFFR inside the FOMC target range.
6) A same-day repo operation by the Fed adds reserves and typically eases short-term funding pressures.
7) Selling Treasuries from the SOMA portfolio or allowing runoff tends to drain reserves over time.
8) The Standing Repo Facility (SRF) is designed as a floor under money market rates by paying interest on balances held at the Fed.
9) ON RRP is an overnight reverse repo the Fed conducts with a broad set of counterparties at a pre-announced rate, which helps pin down the lower bound.
10) QT (large-scale asset purchases) primarily aims to reduce term premia and longer-term yields when short rates are near the effective lower bound.
11) QT (balance-sheet runoff) typically increases reserves in the banking system and eases financial conditions.
12) The H.4.1 release shows both Fed assets (e.g., Treasuries, MBS, repos) and liabilities (e.g., currency in circulation, reserves, reverse repos).
13) QE is mainly used to control the overnight funds rate directly, replacing the need for IORB/ON RRP adjustments.
14) QT’s impact can be state-dependent; in stressed markets, draining liquidity may have larger effects on money markets than in calm conditions.
15) When inflation is running well above target and demand is strong, the typical stance shift is toward tightening policy.
16) Forward guidance and the expected path of the policy rate influence longer-term yields even before any asset purchases occur.
17) Higher policy rates typically loosen credit conditions, raise equity prices, and boost housing activity in the near term.
18) FOMC minutes are typically released about three weeks after the meeting and provide discussion context beyond the statement.
19) The ECB, BoE, and BoJ all use a short-rate instrument plus balance-sheet tools, but operating details and mandates differ across jurisdictions.
20) The fed funds target is a single point level in today’s framework, not a range.