Federal Funds Rate
The federal funds rate is what banks charge each other for overnight loans of reserves, and it is the primary tool of US monetary policy. The Fed raises it to fight inflation and cuts it to stimulate growth — and because it filters into mortgages, car loans, credit cards, and business borrowing, it effectively sets the price of money across the economy.
Fed funds rate
Next release: Sep 4, 2026
Latest reading
As of August 2026, Fed Funds (Fed funds rate) stands at 3.63% — unchanged from 3.63% the prior reading, 15.47 pp below the June 1981 record of 19.10%. The Fed sets a 25-basis-point target range and steers the effective rate inside it. Below 2.5% is accommodative, 2.5-4% is roughly neutral, and above 4% is restrictive. The level matters, but the trajectory matters more — the dot plot and Fed funds futures show where the market thinks rates are headed, which moves assets long before any actual decision. Series history runs from 1954 to present.
Sources, methodology & freshnessLast updated 2026-09-04 · Open ↓Close ↑
Full history
Methodology & data
Fed Funds is sourced from Fed via the Federal Reserve's FRED service (Federal Reserve via FRED (FEDFUNDS), monthly). We pull the complete history, chart it on a monthly basis, overlay SPY for context, and generate a dated plain-English reading from the latest release — with no smoothing or adjustment beyond what the chart legend states.
Every reading is stamped with its release date, last updated 2026-09-04. Maintained and reviewed by Yuriy Matso; see our methodology for the standards every series on the site is held to.
Frequently asked questions
What is the Federal Funds Rate?
The federal funds rate is what banks charge each other for overnight loans of reserves, and it is the primary tool of US monetary policy. The Fed raises it to fight inflation and cuts it to stimulate growth — and because it filters into mortgages, car loans, credit cards, and business borrowing, it effectively sets the price of money across the economy.
How do you read Fed Funds?
The Fed sets a 25-basis-point target range and steers the effective rate inside it. Below 2.5% is accommodative, 2.5-4% is roughly neutral, and above 4% is restrictive. The level matters, but the trajectory matters more — the dot plot and Fed funds futures show where the market thinks rates are headed, which moves assets long before any actual decision.
Where does the Fed Funds data come from?
Federal Reserve via FRED (FEDFUNDS), monthly. We chart the full history and publish a dated, plain-English reading with every release; the raw series is downloadable as CSV at /data/indicators/fed-funds-rate.csv.
How often is Fed Funds updated?
Fed Funds is a monthly series from Fed, refreshed here as soon as a new release posts to FRED.
Fed funds rate
Next release: Sep 4, 2026