Loans are largely used financial tools not only by individuals. Institutions in both the private and the public sector may take out loans whenever they experience financial difficulties as a company. The federal funds rate is basically the interest rate itself at which these loans are being released. For example, one bank that finds itself in a quickly need of funds may apply for a loan from another bank which has reserves with the Fed. According to the Federal Reserve Board, the federal funds target rate for 2009 is 0%-0.25% (From January 1 until November 1 2009)