Interest Rates: Immediate Rates (< 24 Hours): Federal Funds Rate: Total for United States
IRSTFR01USQ156N • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5.33
Year-over-Year Change
5822.22%
Date Range
1/1/1960 - 10/1/2023
Summary
The Federal Funds Rate is a key U.S. interest rate that reflects the cost of overnight lending between banks. As a monetary policy tool, it impacts broader financial conditions and consumer/business borrowing rates.
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 Federal Funds Rate is the interest rate at which depository institutions trade balances held at the Federal Reserve. It is a crucial benchmark that influences a range of other interest rates in the economy.
Methodology
The Federal Reserve Bank collects daily data on actual overnight federal funds transactions.
Historical Context
The Federal Funds Rate is a primary policy lever used by the Federal Reserve to influence inflation, employment, and economic growth.
Key Facts
- The Federal Funds Rate is set by the Federal Open Market Committee (FOMC).
- It is the key benchmark for short-term interest rates in the U.S.
- Changes in the Federal Funds Rate impact consumer and business borrowing costs.
FAQs
Q: What does this economic trend measure?
A: The Federal Funds Rate measures the interest rate at which banks lend reserve balances to other banks on an overnight basis.
Q: Why is this trend relevant for users or analysts?
A: The Federal Funds Rate is a critical monetary policy tool used by the Federal Reserve to influence broader economic conditions and financial markets.
Q: How is this data collected or calculated?
A: The Federal Reserve Bank collects daily data on actual overnight federal funds transactions between banks.
Q: How is this trend used in economic policy?
A: The Federal Reserve uses adjustments to the Federal Funds Rate to impact inflation, employment, and economic growth as part of its dual mandate.
Q: Are there update delays or limitations?
A: The Federal Funds Rate data is published daily with no significant update delays.
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Citation
U.S. Federal Reserve, Interest Rates: Immediate Rates (< 24 Hours): Federal Funds Rate: Total for United States (IRSTFR01USQ156N), retrieved from FRED.