If you've been paying attention to chatter about interest rates in recent years, you've probably come across the term "federal funds rate" — or just "fed funds rate" for short. But what exactly is the federal funds rate, and why does it matter?
The factors behind this key interest rate can be confusing, but the simplest way to think about the federal funds rate is to consider it the first link in the chain for all borrowing across the financial sector.
