Federal Funds Rate
A reference page for understanding the Federal Reserve's policy-rate framework and its relationship with consumer financial rates.
What It Measures
The federal funds rate is associated with overnight transactions in federal funds in the United States. The Federal Open Market Committee sets a target range for the federal funds rate as part of monetary policy.
Why It Matters
Changes in monetary policy can influence broader market rates and eventually affect borrowing, saving, mortgages and investment conditions, although consumer rates do not move one-for-one with the policy rate.
Primary Data Sources
For current official policy decisions use the Federal Reserve at Federal Reserve Open Market Operations. Historical effective federal funds rate data is also available from FRED series FEDFUNDS.
Numelios does not independently publish or guarantee current policy-rate values on this page. Verify time-sensitive figures with the primary source.