90-Day AA Financial Commercial Paper Interest Rate

RIFSPPFAAD90NB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.26

Year-over-Year Change

-0.70%

Date Range

10/5/2021 - 8/4/2025

Summary

The 90-Day AA Financial Commercial Paper Interest Rate tracks the short-term borrowing costs for high-quality financial institutions. This metric provides critical insight into credit market conditions and financial sector lending dynamics.

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

Commercial paper represents an unsecured, short-term debt instrument issued by corporations and financial institutions to fund immediate operational needs. The AA rating indicates a high credit quality, making this rate a key indicator of financial market liquidity and lending confidence.

Methodology

The rate is calculated based on daily market transactions of top-rated financial commercial paper with a 90-day maturity, aggregated and reported by the Federal Reserve.

Historical Context

Policymakers and investors use this rate to assess short-term credit market health and potential economic stress in the financial sector. It serves as a benchmark for short-term lending and investment decisions.

Key Facts

  • Represents 90-day borrowing costs for top-rated financial institutions
  • Reflects short-term credit market conditions
  • Indicates financial sector lending confidence
  • Used by investors and policymakers as a market health indicator

FAQs

Q: What does an increasing commercial paper rate indicate?

A: An increasing rate typically suggests higher perceived risk or tightening credit market conditions, potentially signaling economic uncertainty.

Q: How is this rate different from other interest rates?

A: This rate specifically measures short-term, unsecured borrowing for high-quality financial institutions, distinguishing it from broader interest rate measures.

Q: Why is the AA rating important?

A: The AA rating indicates high credit quality, meaning the issuing institutions have a strong likelihood of meeting their financial obligations.

Q: How frequently does this rate change?

A: The rate can change daily based on market conditions, reflecting real-time shifts in financial market dynamics.

Q: Who uses this rate?

A: Investors, financial analysts, economists, and policymakers use this rate to assess short-term credit market health and make informed economic decisions.

Related Trends

Citation

U.S. Federal Reserve, 90-Day AA Financial Commercial Paper Interest Rate [RIFSPPFAAD90NB], retrieved from FRED.

Last Checked: 8/1/2025