Effective Federal Funds Rate: 25th Percentile
This dataset tracks effective federal funds rate: 25th percentile over time.
Latest Value
4.33
Year-over-Year Change
0.00%
Date Range
3/1/2016 - 8/8/2025
Summary
The Effective Federal Funds Rate: 25th Percentile represents the lower quartile of interbank lending rates in the United States. This metric provides insight into the lower bound of short-term borrowing costs among financial institutions.
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 statistical measure indicates the interest rate at which 25% of federal funds transactions occur below this level. Economists use this percentile to understand the distribution of lending rates and potential market liquidity conditions.
Methodology
The rate is calculated by collecting and ranking actual federal funds transactions, then identifying the value at the 25th percentile of those transactions.
Historical Context
Policymakers and financial analysts use this metric to assess underlying lending market dynamics and potential stress in short-term credit markets.
Key Facts
- Represents the lower quartile of federal funds transaction rates
- Provides insight into short-term lending market conditions
- Used by economists to understand market liquidity and borrowing costs
FAQs
Q: What does the 25th percentile of the federal funds rate indicate?
A: It shows the interest rate below which 25% of federal funds transactions occur, offering insight into the lower end of short-term lending rates.
Q: How is this metric different from the median federal funds rate?
A: While the median represents the midpoint of transactions, the 25th percentile captures the lower range of lending rates, indicating potential market stress or liquidity conditions.
Q: Who calculates and publishes this data?
A: The Federal Reserve collects and calculates this metric based on actual federal funds transactions reported by financial institutions.
Q: How do policymakers use this information?
A: Central bankers analyze this metric to understand market lending conditions and potential adjustments to monetary policy.
Q: How frequently is this data updated?
A: The Effective Federal Funds Rate data is typically updated daily, reflecting real-time changes in interbank lending markets.
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Similar EFFR Trends
Citation
U.S. Federal Reserve, Effective Federal Funds Rate: 25th Percentile [EFFR25], retrieved from FRED.
Last Checked: 8/1/2025