Trying to contextualize the significance of Federal Funds Rates by mapping historical rate hikes & drops with SPX. Considering laying out color coded map onto SPX chart. Referencing this outline of rate changes
The Discount rate is the rate that the fed charges commercial banks to borrow from the fed. The Fed is the bank of commercial banks. the federal funds rate is the average rate that other banks lend to each other, and cannot be directly controlled by the fed, but through secondary measures the fed can influence the federal funds rate. That’s why they call it the ‘Target Federal Funds Rate’
“The Federal Open Market Committee voted today to raise its target for the federal funds rate by…”
What’s all the Yellen About? Monetary Policy and the Federal Reserve: Crash Course Economics #10