Effective Federal Funds Rate: 99th Percentile
This dataset tracks effective federal funds rate: 99th percentile over time.
Latest Value
4.35
Year-over-Year Change
-2.03%
Date Range
3/1/2016 - 8/6/2025
Summary
The Effective Federal Funds Rate: 99th Percentile represents the highest 1% of overnight lending rates between banks in the United States. This metric provides critical insight into extreme market conditions and potential financial stress in the banking system.
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 upper extreme of interbank lending rates, reflecting periods of significant market volatility or potential systemic financial pressure. Economists and policymakers use this percentile to understand outlier events and potential risks in the financial system.
Methodology
The data is calculated by analyzing the distribution of daily effective federal funds rates and identifying the value at the 99th percentile of observed rates.
Historical Context
Central banks and financial regulators use this metric to assess potential systemic risks and inform monetary policy decisions during periods of market uncertainty.
Key Facts
- Represents the highest 1% of overnight lending rates
- Indicates potential financial market stress
- Used by policymakers to assess systemic risks
FAQs
Q: What does the 99th percentile of the Federal Funds Rate indicate?
A: It shows the extreme upper limit of overnight lending rates, highlighting potential financial market stress or unusual economic conditions.
Q: How is this metric different from the standard Federal Funds Rate?
A: While the standard rate represents the average, the 99th percentile captures the most extreme lending rate scenarios.
Q: Why do economists track this specific percentile?
A: It provides insight into rare but significant market events that could signal broader economic challenges or systemic risks.
Q: How often is this data updated?
A: The data is typically updated daily, reflecting the most recent interbank lending rate information.
Q: What limitations exist in interpreting this metric?
A: The 99th percentile represents an extreme scenario and should be analyzed alongside other economic indicators for comprehensive understanding.
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Similar EFFR Trends
Citation
U.S. Federal Reserve, Effective Federal Funds Rate: 99th Percentile [EFFR99], retrieved from FRED.
Last Checked: 8/1/2025