Article: A Look at Federal Funds Rate

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Dateline: WASHINGTON Running out of room to lower a key interest rate, the Federal Reserve is looking for other options to get the economy moving again.

Fed Chairman Alan Greenspan made clear at a congressional hearing Wednesday that the central bank was not running out of "monetary ammunition" to prevent a destabilizing drop in prices.

The Fed's main tool is the federal funds rate, which it can raise or lower to bring about changes in consumer and business spending.

Here, in question and answer form, is a look at the federal funds rate and other tools at the Fed's disposal:

Q: What is the federal funds rate?

A: The federal funds rate, the Fed's main tool ...

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