The federal funds rate is the overnight lending interest rate banks charge one another to borrow money. --------------------------------------------------------------- Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Dictionary of Economics Course: http://bit.ly/2Ju90fy Additional practice questions: http://bit.ly/2M19IzB Ask a question about the video: http://bit.ly/2kNRlSb Help translate this video: http://bit.ly/2M1r7YO