the interest rate financial institutions pay to the Federal Reserve to borrow reserves.
Federal Open Market Committee (FOMC)
a policy-making group within the Federal Reserve System that directs the open market operations of the system.
Federal Reserve system
The central banking system and monetary authority of the United States, made up of regional Federal Reserve banks and the Federal Reserve Board of Governors, which supervises and examines state-chartered member banks, regulates bank holding companies, and is responsible for the conduct of monetary policy.
Government policy concerning money and credit conditions, especially the rate of growth in the money supply and the level of interest rates.
open market operations
the purchase and sale of government securities by the Federal Reserve in order to control levels of bank reserves. Those aimed at defending a target level of reserves from outside influences are defensive open market operations; those aimed at changing the level of reserves are dynamic open market operations.