Changing the interest rate at which banks lend to each other is a process called

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The process of changing the interest rate at which banks lend to each other is called the adjustment of the federal funds rate. This is a tool used by the Federal Reserve to influence the interest rates that individuals and businesses pay for loans and to manage the overall health of the economy. Open-market operations and quantitative easing are also tools used by the Federal Reserve to influence the economy, but they involve the buying and selling of securities rather than adjusting interest rates. Federal loan management and acquisition and divestiture functionality are not terms commonly used in relation to the Federal Reserve's monetary policy.

Changing the Interest Rate at Which Banks Lend to Each