Interest Rates: Immediate Rates (< 24 Hours): Federal Funds Rate: Total for United States
Annual
IRSTFR01USA156N • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5.33
Year-over-Year Change
7514.29%
Date Range
1/1/1960 - 1/1/2023
Summary
The Annual trend measures the annual interest rate on federal funds transactions, which is a key indicator of the Federal Reserve's monetary policy stance and its impact on the broader economy.
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
The Annual series tracks the effective federal funds rate, which is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight. This benchmark rate is closely monitored by policymakers and financial markets as a signal of the Federal Reserve's monetary policy direction.
Methodology
The data is collected and calculated by the U.S. Federal Reserve from actual federal funds transactions.
Historical Context
The federal funds rate is a critical tool used by the Federal Reserve to influence economic conditions and achieve its dual mandate of maximum employment and price stability.
Key Facts
- The federal funds rate is set by the Federal Open Market Committee (FOMC).
- Changes in the federal funds rate can impact consumer and business borrowing costs.
- The federal funds rate is a key input for many other interest rates in the economy.
FAQs
Q: What does this economic trend measure?
A: The Annual trend measures the effective federal funds rate, which is the interest rate at which banks lend reserve balances to each other overnight.
Q: Why is this trend relevant for users or analysts?
A: The federal funds rate is a key policy tool used by the Federal Reserve to influence economic conditions and is closely watched by policymakers, investors, and economists.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Federal Reserve from actual federal funds transactions.
Q: How is this trend used in economic policy?
A: The federal funds rate is a critical input for the Federal Reserve's monetary policy decisions, which aim to promote maximum employment and price stability.
Q: Are there update delays or limitations?
A: The annual federal funds rate data is published with a short lag by the Federal Reserve.
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Citation
U.S. Federal Reserve, Annual (IRSTFR01USA156N), retrieved from FRED.