Federal Funds Target Range - Upper Limit
This dataset tracks federal funds target range - upper limit over time.
Latest Value
4.50
Year-over-Year Change
0.00%
Date Range
12/16/2008 - 8/6/2025
Summary
The Federal Funds Target Range - Upper Limit represents the maximum interest rate at which banks can lend to each other overnight through the Federal Reserve system. This metric is a critical tool for monetary policy, directly influencing borrowing costs, inflation, and overall economic conditions.
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 reflects the upper boundary of the Federal Reserve's target range for the federal funds rate, which is set by the Federal Open Market Committee (FOMC). Economists closely monitor this rate as a key signal of monetary policy stance and potential economic interventions.
Methodology
The rate is determined by the Federal Reserve's FOMC through periodic assessments of economic conditions, inflation, employment, and overall economic stability.
Historical Context
This metric is used by policymakers, investors, and financial institutions to understand monetary policy direction and make strategic economic decisions.
Key Facts
- Directly influences short-term borrowing costs across the financial system
- Updated periodically by the Federal Open Market Committee
- Serves as a critical monetary policy tool for managing economic conditions
FAQs
Q: How often is the Federal Funds Target Range updated?
A: The FOMC typically reviews and potentially adjusts the target range during its eight scheduled meetings per year, with the ability to make emergency changes if economic conditions warrant.
Q: What impact does this rate have on consumers?
A: Changes in the federal funds rate can affect interest rates for mortgages, credit cards, savings accounts, and other financial products, directly influencing borrowing and saving costs.
Q: How is the DFEDTARU different from the federal funds rate?
A: DFEDTARU specifically represents the upper limit of the target range, while the federal funds rate is the actual rate at which banks lend to each other within that range.
Q: Why do economists care about this metric?
A: It provides crucial insight into the Federal Reserve's monetary policy stance and expectations for economic growth, inflation, and potential economic interventions.
Q: What are the limitations of this data point?
A: While important, the target range is just one of many economic indicators and should be interpreted alongside other data points for a comprehensive economic analysis.
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Citation
U.S. Federal Reserve, Federal Funds Target Range - Upper Limit [DFEDTARU], retrieved from FRED.
Last Checked: 8/1/2025