The trend over time.
The latest available read: Fed Funds Rate is at 4.00% as of October 2026. Source: FRED · FEDFUNDS. CSV and PNG downloads cover the selected date range.
What Fed Funds Rate measures.
The effective federal funds rate: the interest rate at which banks lend reserves to each other overnight, shown as the monthly average. The Federal Reserve sets a target range and steers this rate toward it.
It is the base for short-term borrowing costs across the economy, from credit cards to business loans. The market looks at where it is relative to inflation, which is why the real policy rate is tracked separately.
Why it matters.
This rate ripples through the entire economy, affecting what banks charge you for mortgages, car loans, and credit cards, while also determining what you earn on savings accounts and money market funds.
Where it fits.
Fed Funds Rate is covered on the Inflation & the Fed page.