Effective Federal Funds Rate: 75th Percentile
This dataset tracks effective federal funds rate: 75th percentile over time.
Latest Value
4.33
Year-over-Year Change
0.00%
Date Range
3/1/2016 - 8/7/2025
Summary
The Effective Federal Funds Rate: 75th Percentile represents the upper quartile of actual overnight lending rates between banks in the federal funds market. This metric provides insight into the higher-end interest rate transactions and helps economists understand the range of interbank lending costs.
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 captures the 75th percentile of actual federal funds transactions, indicating the interest rate above which 25% of transactions occur. Economists use this data point to analyze the distribution of lending rates and potential market stress or variability.
Methodology
The rate is calculated by ordering all reported federal funds transactions and identifying the value at the 75th percentile of those transactions.
Historical Context
Policymakers and financial analysts use this metric to assess lending market dynamics and potential variations in short-term borrowing costs.
Key Facts
- Represents the upper quartile of federal funds transactions
- Provides insight into lending rate variability
- Calculated daily by the Federal Reserve
FAQs
Q: How is the 75th percentile different from the median rate?
A: The 75th percentile represents a higher threshold of transactions, showing rates above which only 25% of transactions occur, compared to the median which splits transactions exactly in half.
Q: Why do economists care about the 75th percentile rate?
A: This metric helps understand the upper range of lending costs and potential market stress or variations in interbank lending rates.
Q: How often is this data updated?
A: The Effective Federal Funds Rate: 75th Percentile is typically updated daily by the Federal Reserve.
Q: What does a rising 75th percentile rate indicate?
A: A rising rate might suggest increasing lending costs, potential market tightness, or changing monetary policy expectations.
Q: Are there limitations to using this metric?
A: While informative, the 75th percentile is just one perspective on lending rates and should be considered alongside other economic indicators.
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Similar EFFR Trends
Citation
U.S. Federal Reserve, Effective Federal Funds Rate: 75th Percentile [EFFR75], retrieved from FRED.
Last Checked: 8/1/2025