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The federal fund rate (also popular as Fed Fund Rate or Fed Rate) is the rate that interest banks charge each other on overnight loans in the USA. The rate is fixed by the US central bank Federal Reserve. This is equivalent to the Repo rate of India which is fixed by the RBI.
In wake of the sub-prime real estate crisis wrecking havoc on the US economy, the Fed Rate has been cut time and again to counter the possible future recession.