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Fed Funds Rate: where it stands right now.

3.75% +0.00 vs prior month July 2026 · updated monthly

The Fed funds rate is sitting at 3.75%, having fallen from 5.5% over the past year as the Federal Reserve cut rates to support the economy. It's holding steady now after a series of cuts, roughly in the middle of where it's been historically over the past two decades.

The trend since 2019.

The current read: Fed Funds Rate is at 3.75% as of July 2026. Source: FRED/BEA via Indicators IQ.

Why it matters.

This rate ripples through everything you borrow for—mortgages, credit cards, auto loans, and savings accounts all move in the same direction. When the Fed holds rates flat like this, it signals they're pausing their easing cycle, which affects how much you'll pay or earn on borrowed and saved money.

Where it fits.

Fed Funds Rate feeds the Inflation & the Fed view — one of the six areas behind the site's Macro IQ score.