Monetary PolicyFederal Reserve8x/year (FOMC)
Federal Funds Rate
What is Federal Funds Rate?
The interest rate at which banks lend reserves to each other overnight.
Why it matters
The most important price in global finance.
How to read prints
When it rises
Tighter monetary policy; pressures growth, dollar typically stronger.
When it falls
Easier policy; supports growth and risk assets, dollar typically weaker.
Frequently asked
What is the Federal Funds Rate?⌄
The interest rate at which banks lend reserve balances to each other overnight. The FOMC sets a target range and uses the IORB and ON-RRP rates to keep the effective rate inside it.
How often does the Fed change rates?⌄
The FOMC meets eight times per year. It can also act between meetings in emergencies (e.g., March 2020).
What is the difference between the target rate and effective rate?⌄
The target is the FOMC range (e.g., 5.25% to 5.50%). The effective rate (EFFR) is the volume-weighted median actually transacted in the fed funds market each day.
How does the Fed Funds Rate affect markets?⌄
It anchors the entire short end of the yield curve, drives the dollar via rate differentials, and is the single biggest input to risk-asset valuations.
Track it on Market Ontology
Monitor Federal Funds Rate in real time on Monetary Policy, alongside regime classification, transmission mapping, and cross-asset context.
| Source | Federal Reserve |
| Frequency | 8x/year (FOMC) |
| Category | Monetary Policy |
| FRED Series | DFF |
| Unit | % |
| Related Module | Monetary Policy |
Track Federal Funds Rate in real time
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