The trend over time.
The latest available read: Real Policy Rate is at 0.74% as of August 2026. Source: Derived from official source series. CSV and PNG downloads cover the selected date range.
What Real Policy Rate measures.
The Fed funds rate minus core PCE inflation, in percentage points. It is computed on this site from two other indicators, so it is not a published government statistic.
A positive real rate means policy is working against demand after accounting for inflation; zero or negative means it is not. There is no single neutral level, and the economy's trend growth and the market's expectations shape where restrictive begins.
Why it matters.
A near-zero real rate means the Fed's borrowing cost barely exceeds inflation, which encourages spending and borrowing but erodes savings returns. This ultra-loose stance affects your mortgage rates, credit card costs, and how much your cash actually earns.
Where it fits.
Real Policy Rate is covered on the Inflation & the Fed page.