DISCRETE POLICY CHANGES AND EMPIRICAL MODELS OF THE FEDERAL FUNDS RATE

This article points out that discrete changes to the target federal funds rate are a clear source of predictable change in the monthly or quarterly average of the daily federal funds rates.

Subjects

• Interest rates
• Monetary policy
• Federal funds market (United States)

Details

• From
  FRB of St. Louis Review, Nov.-Dec. 2004, pp. 61-72