Federal funds

Non-interest bearing deposits held in reserve for depository institutions at their district Federal Reserve Bank. Also, excess reserves lent by banks to each other. The New York Times Financial Glossary

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federal funds UK US noun [plural] (also fed funds) GOVERNMENT, FINANCE
money that the US government makes available for each state to pay for projects or research: »

Local taxes fund $4.7 billion of spending on schools, with state and federal funds providing the rest.


Many of the housing projects in the area were built with federal funds and tax credits.

$70,000/$2 million/5.5 billion, etc. in federal funds »

The national laboratory is spending $60 million this year in federal funds on advanced biodetection systems.

use/receive/lose federal funds »

The proposal would offer states flexibility in using federal funds to expand health insurance coverage.

in the US, money that banks give to federal reserve banks to lend to other banks who need it: federal funds (interest) rate »

The Fed has taken the decision to cut both the discount rate and the federal funds rate a quarter point.

Compare STATE FUNDS(Cf. ↑state funds)

Financial and business terms. 2012.

Look at other dictionaries:

  • federal funds — Member bank deposits at the Federal Reserve; these funds are loaned by member banks to other member banks. Chicago Board of Trade glossary Short term investments/borrowings between banks, usually called fed funds. The investing/lending bank… …   Financial and business terms

  • Federal funds — This article is about funds maintained by the U.S. Federal Reserve. For the funds provided by the U.S. government in terms of aid and assistance, see Federal aid. In the United States, federal funds are overnight borrowings by banks to maintain… …   Wikipedia

  • Federal Funds — Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. These non interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve… …   Investment dictionary

  • federal funds — noun plural Date: 1950 reserve funds lent overnight by one Federal Reserve bank to another …   New Collegiate Dictionary

  • federal funds — noun plural : reserve funds lent overnight by one member bank of the Federal Reserve to another …   Useful english dictionary

  • Federal funds —   An ISO term. United States dollars on deposit at a Federal Reserve Bank in the United States.   Reserves traded between commercial banks in the USA for overnight use. The minimum amount is US$1,000,000 …   International financial encyclopaedia

  • federal funds —  Deposits made by commercial banks in their Federal Reserve Banks to meet reserve requirements …   American business jargon

  • Federal Funds — /ˌfed(ə)rəl fʌndz/ plural noun deposits by commercial banks with the Federal Reserve Banks, which can be used for short term loans to other banks …   Dictionary of banking and finance

  • Federal Funds — Fin deposits held in reserve by the Federal Reserve System …   The ultimate business dictionary

  • federal funds effective rate — USA federal funds effective rate, Also known as federal funds rate. A floating interest rate reference rate used by a lender under a loan agreement. In general terms, it is the rate per annum equal to the rate charged on federal funds… …   Law dictionary

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