Money MarketsFederal Reserve Bank of New YorkDaily

Effective Federal Funds Rate (EFFR)

What is Effective Federal Funds Rate (EFFR)?

EFFR is the volume-weighted median rate at which U.S. depository institutions lend unsecured federal funds to each other overnight. It is the realized counterpart to the FOMC fed funds target range.

Why it matters

EFFR shows whether the Fed is actually achieving its target. Persistent drift toward the top or bottom of the range reveals whether the IORB or ON-RRP rate is the effective floor and signals reserve-supply conditions.

How to read prints

When it rises

EFFR drifting up in the range; reserves becoming scarcer.

When it falls

EFFR drifting down in the range; reserves ample.

Frequently asked

What is EFFR?⌄
The Effective Federal Funds Rate, published daily by the New York Fed as the volume-weighted median of overnight unsecured interbank fed funds transactions.
How is EFFR different from the target rate?⌄
The target is the FOMC range (e.g., 5.25 to 5.50%). EFFR is the actually transacted rate, which sits inside the range.
Why is the EFFR-IORB spread important?⌄
IORB (Interest on Reserve Balances) is the rate the Fed pays banks on reserves. EFFR trades a few bp below IORB in ample-reserve regimes; if it crosses above IORB, reserves are scarce.
How does EFFR relate to SOFR?⌄
EFFR is unsecured interbank; SOFR is secured (Treasury repo). The basis between them reflects bank-credit risk and collateral demand.

Track it on Market Ontology

Monitor Effective Federal Funds Rate (EFFR) in real time on Liquidity Regime, alongside regime classification, transmission mapping, and cross-asset context.

SourceFederal Reserve Bank of New York
FrequencyDaily
CategoryMoney Markets
FRED SeriesEFFR
Unit%
Related ModuleLiquidity Regime

Related indicators

FRA-OIS Spread

Calculated

Overnight Reverse Repo Facility (ON-RRP)

Federal Reserve Bank of New York

Secured Overnight Financing Rate (SOFR)

Federal Reserve Bank of New York

Track Effective Federal Funds Rate (EFFR) in real time

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