Explain how the Federal Reserve limits deviations of the market's Federal Funds rate? Explain how the Federal Reserve limits deviations of the markets...

The
"corridor" or "channel" system, which the Fed did not use in the past, sets
boundaries on the federal funds rate. The ceiling, or upper limit, of the "corridor"
for deviations in the federal funds rate is the discount rate. The floor,
or bottom limit, of the deviation is the interest rate on excess reserves.
This is how the corridor system limits deviations (i.e., changes in) the federal funds rate: it
cannot go higher than the discount rate nor lower than the excess reserve rate.

http://www.kc.frb.org/publicat/econrev/pdf/10q4Kahn.pdf