The Federal Open Market Committee (FOMC) conducts monetary
policy by setting the target range for the federal funds rate. The
target range is typically 25 basis points wide. The Fed then implements
policy by using its monetary policy tools to ensure this target range
transmits to market interest rates, keeping the market-determined
federal funds rate within the FOMC’s target range. For more discussion,
see: “Making Technical Adjustments: The Difference Between ‘Conducting’ and ‘Implementing’ Monetary Policy.”