QVMS - Federal Reserve Watch: Fed Keeps Federal Funds Rate At 0.08 Percent

• The Federal Reserve has kept the effective Federal Funds rate, its policy rate of interest, constant at 0.08 percent since September 1, 2021.
• During this time period, the Federal Reserve has purchased $373 billion in securities, and the Treasury Department has released $118 billion into the banking system.
• The Federal Reserve has offset most of this injection through the use of reverse repurchase agreements.
• The Fed only wants to increase its policy rate of interest once in 2022 and the question that must be answered is how the Fed is going to accomplish this as it tapers its purchase of securities.

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