The central bank's decision to leave interest rates alone is laid out in a lengthy statement that's not leisurely reading. We do the work for you and interpret what the Fed really said. 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.