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Real Policy Rate: the latest available reading.

0.41% -0.00 vs prior month July 2026 · updated monthly

The real policy rate sits at 0.41%, near historic lows after falling sharply from 2.63% roughly two years ago. It's holding steady this month, having bottomed out in recent months as the Fed cut rates while inflation cooled.

The trend since 2019.

The latest available read: Real Policy Rate is at 0.41% as of July 2026. Source: Derived from official source series.

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