Board of Governors of the Federal Reserve
Federal Funds Range
Percent, Not Seasonally Adjusted
The federal funds target rates measures the interest rate at which banks lend each other excess money. This is set by the Fed 8 times a year and is indicative of the overall economic situation in the US.
The data shows autocorrection and a non-normal distribution. The data should be differenced. While the Order Norm transformation, provides the best normality, the Untransformed variable will also perform well.
Data is unable to be distributed by time or geography. The roll up method used is Weighted Average.
Federal Funds Target Range Upper Limit
Auto Correction Function
Auto Correlation Function After Differencing
Partial Auto Correlation Function
Seasonal and Trend Decompostion
Data shows autocorrectation indicating a need for differencing
The ACF indicates 2 order differencing is appropriate.
Following first order differencing, no further differencing is required based on the differenced ACF at lag one of 0.00
The Kwiatkowski-Phillips-Schmidt-Shin (KPSS) test, KPSS Trend = 4.83 p-value = 0.01 indicates that the data is not stationary.
The Shapiro-Wilk test returned W = 0.75 with a p-value =0.00 indicating the data does not follow a normal distribution.
A skewness score of 0.98 indicates the data are moderately skewed.
Hartigan's dip test score of 0.06 with a p-value of 0.00 inidcates the data is multimodal
Statistics (Pearson P/ df, lower => more normal)
Board of Governors of the Federal Reserve System (US), Federal Funds Target Range - Upper Limit [DFEDTARU], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DFEDTARU, December 19, 2019.