Federal Funds Rate

federal funds rate: It closed up 0.02 cents at 88.96 US on Thursday, after falling to 88.76 US earlier in the day. The loonie was last below 89 cents in May 2009. It has lost four per cent in value since the beginning of the year. , according to CBC. The Feds previous guidance had been that the federal funds rate would remain at its current low level of 0 to .25 per cent for a considerable time after it ended its monthly bond-buying program. The Canadian dollar is testing new levels below 89 cents on Thursday, after a steep slide on Wednesday took it down nine-tenths of a cent to 88.93 US. The main pressure on the loonie came from remarks by Fed chair Janet Yellen on Wednesday that were interpreted by investors to mean that American interest rates could be headed higher earlier than they had thought. (www.immigrantscanada.com). As reported in the news.