Fed Policy Corridor
The band within which the Federal Reserve targets the overnight rate, bounded above by IORB (interest on reserve balances) and below by the overnight reverse repo (ON RRP) facility rate. The corridor is the operational framework the Fed uses to keep market rates inside its target range. Where SOFR trades within the corridor signals whether the system is well-supplied with reserves or trending toward stress.
What Fed Policy Corridor Is
The band within which the Federal Reserve targets the overnight rate, bounded above by IORB (interest on reserve balances) and below by the overnight reverse repo (ON RRP) facility rate. The corridor is the operational framework the Fed uses to keep market rates inside its target range. Where SOFR trades within the corridor signals whether the system is well-supplied with reserves or trending toward stress.
Where Fed Policy Corridor Appears in TBL Research
Fed Policy Corridor is one of the money markets and fed plumbing that TBL tracks. For how it fits the broader framework, see Bitcoin and Global Liquidity.
Related TBL Resources
Bitcoin and Global Liquidity: The TBL Framework
Bitcoin moves as the highest-beta expression of global dollar liquidity. Global liquidity is the joint output of central bank balance sheets, Treasury cash management, the global banking system, and stablecoin issuance, read through the lens of collateral-system stress rather than the M2 aggregate most retail commentators cite.
TBL Glossary
Plain-English definitions for the macro, derivatives, on-chain, and TBL proprietary terms used across TBL's research. Each entry covers what the indicator measures and why it matters, conceptual form only, without proprietary formulas or live readings.
The indicators defined here are tracked live on TBL Pulse and interpreted in weekly written form in TBL Pro.