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Will the Federal Reserve cut the federal funds target rate or lower bound to 0% or lower before January 1 2021?

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. Reserve balances are amounts held at the Federal Reserve to maintain depository institutions' reserve requirements. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets.

The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee; these normally occur eight times a year about seven weeks apart. The Committee may also hold additional meetings and implement target rate changes outside of its normal schedule.

As of 18 September 2019 the target range for the federal funds rate is 1.75–2.00%. The federal funds target rate has historically been issued as either a percentage (e.g. 3.0%) or a range (e.g. 2.00% – 2.25%).

You can view the history of Federal Open Market Committee actions here. You can view a graph of the history of the federal funds target rate here.

This question asks: Before January 1 2021, will the FOMC announce that the federal funds target rate is equal to or less than 0%, or, if a target range is given, will the lower bound of that target range be equal to or less than 0%?

Resolution should cite a press release or other document from the Federal Reserve, or credible media reports in the financial press.


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