FFR = Federal Funds Rate

FFR is the interest rate at which depository institutions lend reserve balances to other banks overnight. The rate is determined by the market, but it is influenced heavily by the Federal Reserve (the U.S. central bank) through open market operations. The FFR is a key tool of U.S. monetary policy, used to influence overall economic activity, inflation, and employment levels. Changes in the FFR affect borrowing costs throughout the economy, impacting everything from mortgages and loans to corporate financing.