The Federal Reserve can maintain the Federal funds rate exactly at its target level every hour of every day.

Question

Quizplus · Accepted Answer

The Federal Reserve influences the federal funds rate through open market operations and other tools, aiming to keep it within a target range. However, due to the complexity of the market and the numerous factors affecting supply and demand for reserves, it cannot maintain the rate exactly at its target level every hour of every day.

The Federal Reserve Can Maintain the Federal Funds Rate Exactly