When the Fed raises rates, what parameters will it use?

When Federal Reserve officials decide to raise rates, they will have to determine the parameters by which to do so. One decision will be how to re-set the range for the Fed's benchmark federal funds rate, which now is between zero and 0.25%. Another technical question is whether the Fed will continue using the fed funds rate as its primary tool for adjusting interest rates or whether it will embrace the use of reverse repurchase agreements, a method the New York Fed is testing.

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