The overnight lending rate range is set by the Fed open market committee and the Fed uses various mechanisms like the overnight reverse repurchase agreement facility to keep the actual rate within that range.
“The overnight lending rate range is set by the Fed open market committee and the Fed uses various mechanisms like the overnight reverse repurchase agreement facility to keep the actual rate within that range.”
They set a TARGET range. The ONRRA applies to banks without a fed account and gives the access to safe fed interest.