The term of federal funds interest rate consists of short-term interest rate (1 week–6 months), medium-term interest rate (half a year–30 months) and long-term interest rate (1 year or more). According to relevant information, the federal funds rate is the interest rate in the American interbank lending market. The most important thing is the overnight lending rate. This interest rate change can sensitively reflect the surplus and shortage of inter-bank funds. The directional adjustment of interbank lending rate by the Federal Reserve can directly affect the capital cost of commercial banks and transfer the surplus and deficiency of funds in the interbank lending market to industrial and commercial enterprises, thus affecting consumption, investment and national economy.