To view this email as a web page, click here.

TERM OF THE DAY

Fed funds futures are financial futures contracts based on the federal funds rate and traded on the Chicago Mercantile Exchange (CME) operated by CME Group Inc. (CME). The federal funds rate is the rate banks charge each other for overnight loans of reserves on deposit with the Federal Reserve.

Are you enjoying this newsletter? Forward this link to share financial terms in today's investing news with a fellow friend or colleague today.

Rising gas and housing prices pushed the consumer price index to 3.2% in February, up from January's reading and higher than economist expected. Read more

What Is the CME FedWatch Tool and How Does It Work?

The CME FedWatch Tool provides the probabilities for Fed rate changes. The tool is based on prices for fed funds futures. Read more

Futures Contract Definition: Types, Mechanics, and Uses in Trading

A futures contract is a standardized agreement to buy or sell the underlying commodity or other asset at a specific price at a future date. Read more

Chicago Mercantile Exchange: Definition, History, and Regulation

The Chicago Mercantile Exchange or CME is a futures exchange which trades in interest rates, currencies, indices, metals, and agricultural products. Read more

How can we improve Term of the Day? Tell us at term@investopedia.com

Were you sent this by a friend? Click here to subscribe.

You are receiving this newsletter because you subscribed to the Term of the Day newsletter. If you wish to unsubscribe, please click here.

Investopedia is part of the Dotdash Meredith publishing family.