First, let’s introduce some of the monetary policy terms we’ll be using here: Federal Open Market Committee (FOMC): The seven members of the Board of Governors; the president of the Federal Reserve Bank of New York; and, on a rotating basis, the presidents of four other Reserve Banks. Nonvoting Reserve Bank presidents also participate in deliberations and discussion. Federal funds rate (FFR): The interest rate at which depository institutions and Federal Home Loan Banks borrow and lend reserve balances to each other overnight. Interest on reserve balances (IORB): Interest paid on reserves that banks hold in their ... (full story)