1.0Liberty Street Economicshttps://libertystreeteconomics.newyorkfed.orgmaureeneganhttps://libertystreeteconomics.newyorkfed.org/author/maureenegan-2-2-2-2-2-2-2-2-2-2-2-2-2-2-2-2-2-2-2/The Federal Reserve’s Two Key Rates: Similar but Not the Same? - Liberty Street Economicsrich600338<blockquote class="wp-embedded-content" data-secret="HcSThug0yh"><a href="https://libertystreeteconomics.newyorkfed.org/2023/08/the-federal-reserves-two-key-rates-similar-but-not-the-same/">The Federal Reserve’s Two Key Rates: Similar but Not the Same?</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://libertystreeteconomics.newyorkfed.org/2023/08/the-federal-reserves-two-key-rates-similar-but-not-the-same/embed/#?secret=HcSThug0yh" width="600" height="338" title="“The Federal Reserve’s Two Key Rates: Similar but Not the Same?” — Liberty Street Economics" data-secret="HcSThug0yh" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script>
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https://libertystreeteconomics.newyorkfed.org/wp-content/uploads/sites/2/2023/08/LSE_2023_pass-through_afonso_460.jpg920576Since the global financial crisis, the Federal Reserve has relied on two main rates to implement monetary policy—the rate paid on reserve balances (IORB rate) and the rate offered at the overnight reverse repo facility (ON RRP rate). In this post, we explore how these tools steer the federal funds rate within the Federal Reserve’s target range and how effective they have been at supporting rate control.