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In normal times the trading desk at the New York Fed is assigned with keeping the market rate for fed funds close to the target set by the FOMC. But with the Fed widely expected to cut rates by 50 basis points to 1 percent this afternoon, the situation has seemingly reversed.

The following chart from the NY Fed web site shows the effective fed funds (brownish) vs. the target rate:

10_29_fed2.jpg

Source: Fed Is Catching Up to Reality