3-Month Commercial Paper Minus Federal Funds Rate
CPFF • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-0.07
Year-over-Year Change
75.00%
Date Range
10/5/2021 - 8/4/2025
Summary
The 3-Month Commercial Paper Minus Federal Funds Rate measures the spread between short-term commercial paper rates and the federal funds rate, indicating credit market stress and liquidity conditions. This metric provides insights into financial market tensions and potential economic pressures.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator represents the difference between commercial paper rates and the federal funds rate, serving as a key barometer of short-term credit market dynamics. Economists use this spread to assess financial market stress, potential credit constraints, and overall economic health.
Methodology
The data is calculated by subtracting the federal funds rate from the 3-month commercial paper rate, typically sourced from Federal Reserve statistical reporting.
Historical Context
Policymakers and financial analysts use this trend to evaluate credit market conditions, potential financial system risks, and monetary policy effectiveness.
Key Facts
- Positive spread indicates potential credit market stress
- Widely used by economists to assess financial market conditions
- Reflects short-term borrowing costs and market liquidity
FAQs
Q: What does a widening spread indicate?
A: A widening spread typically suggests increased financial market stress and potential credit market constraints. It may signal reduced liquidity or heightened perceived risk.
Q: How often is this data updated?
A: The Federal Reserve updates this data regularly, usually on a daily or weekly basis, providing near real-time insights into credit market conditions.
Q: Why do investors track this metric?
A: Investors use this spread to assess potential economic risks, understand credit market dynamics, and make informed investment decisions about short-term financial instruments.
Q: How does this relate to monetary policy?
A: The spread provides central banks with critical information about credit market functioning and can influence monetary policy decisions regarding interest rates and market interventions.
Q: What are the limitations of this indicator?
A: While informative, this metric should not be used in isolation and requires interpretation alongside other economic indicators for comprehensive analysis.
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Citation
U.S. Federal Reserve, 3-Month Commercial Paper Minus Federal Funds Rate [CPFF], retrieved from FRED.
Last Checked: 8/1/2025