Janet Yellen and her fellow Federal Reserve policymakers threw a Halloween week get-together and chose not to put away the punch bowl of record-low interest rates. Are they likely to end the party any time soon? See if their statement contained any clues. Read more
Federal funds rate
The interest rate at which banks lend money to one another overnight to meet loan reserve requirements. The federal funds rate is a tool used by the Federal Reserve to control the supply of available money and hence, inflation and other interest rates.
Raising the rate makes it more expensive to borrow. That lowers the supply of available money, which helps keep inflation in check. Lowering the rate has the opposite effect.