<Li> The (effective) federal funds rate is achieved through open market operations at the Domestic Trading Desk at the Federal Reserve Bank of New York which deals primarily in domestic securities (U.S. Treasury and federal agencies' securities). </Li> <Li> LIBOR is based on a questionnaire where a selection of banks guess the rates at which they could borrow money from other banks . </Li> <Li> LIBOR may or may not be used to derive business terms . It is not fixed beforehand and is not meant to have macroeconomic ramifications . </Li> <P> Considering the wide impact a change in the federal funds rate can have on the value of the dollar and the amount of lending going to new economic activity, the Federal Reserve is closely watched by the market . The prices of Option contracts on fed funds futures (traded on the Chicago Board of Trade) can be used to infer the market's expectations of future Fed policy changes . Based on CME Group 30 - Day Fed Fund futures prices, which have long been used to express the market's views on the likelihood of changes in U.S. monetary policy, the CME Group FedWatch tool allows market participants to view the probability of an upcoming Fed Rate hike . One set of such implied probabilities is published by the Cleveland Fed . </P>

When did the fed start raising interest rates