Following a month that brought one "October surprise" after another in the presidential race, Janet Yellen and her Fed colleagues avoid the unexpected and leave rates right where they are. 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.