Fed funds rate calculation


Is the Fed Funds rate calculated over a daily, weekly, monthly or yearly period? For example, it’s 0.05% right now, which would be insanely low if that was a yearly rate, still insanely low monthly, low(2.6%) weekly, but insanely high(roughly 13% for 260 market days) if it’s daily. I understand it’s recalculated daily, but what is the time frame for a given rate.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *