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ECONOMICS
Monetary Policy
Federal Funds Rate
The Federal Funds Rate is a key lever in steering the U.S. economy through monetary policy shifts
31 Jan 2026
0
How does the Federal Reserve influence the federal funds rate to implement monetary policy?
By conducting open market operations that adjust the supply of reserve balances
By directly setting the interest rates on consumer loans and mortgages
By changing the reserve requirements for all depository institutions without market operations
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