The Federal Reserve's half-point cut to its key rate - the federal funds target - may have triggered a surge in Asian and European stock prices on Thursday. But the policy change may have little bearing on the cost of borrowing it is meant to influence if recent disparities between the target and actual rates remain.
The federal funds target represents the cost at which the central bank wants depository institutions to lend to other depository institutions overnight.
Ordinarily, the Fed is ab
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