The Fed Funds Target Isn't About Funds, It's About The Fed And It Shouldn't Be

By Jeffrey P. Snider of Eurodollar University

Chief Investment Strategist • Dec 29, 2022 at 5:49 AM EST

Why does the Federal Reserve still use the federal funds rate as its main policy lever? The answer is control.

Image source: Wikipedia

Why does the Federal Reserve still use the federal funds rate as its main policy lever? The answer is control. Not over money itself, rather realizing this policymakers seek instead control over how everyone else thinks about money, finance, and the economy. Listen closely to what's actually being said.

Video Length: 00:24:00

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This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. Investments involve risk and you can lose money. Past investing and economic performance is not indicative of future performance. Alhambra Investment Partners, LLC expressly disclaims all liability in respect to actions taken based on all of the information in this writing. If an investor does not understand the risks associated with certain securities, he/she should seek the advice of an independent adviser.

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