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Article: Fed Board Boosts Federal Funds Rate
- Article from:
- The Washington Post
- Article date:
- July 16, 1988
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Abrupt increases late this week in a key short-term interest
rate, the federal funds rate, caused some market participants
yesterday to think the Federal Reserve had tightened monetary policy
for the fifth time this year.
However, Federal Reserve sources said increases in the rate were
not the result of such a policy decision. Rather, the increases may
have been the result of an attempt by the central bank to manage more
closely the way in which it provides reserves to the banking system,
sources said. The federal funds rate is the interest rate financial
institutions charge when they loan reserves to one another.
Fed Chairman Alan Greenspan ...