Federal Funds Rate
(Fed Funds Target Rate or Intended Federal Funds Rate)

Rate Increase 12/16/2015

What is the Fed Funds Rate?

Commonly known as the Fed Funds Rate, the Federal Funds Rate is a short-term rate objective or Target Rate of the Federal Reserve Board.  The actual Fed Funds Rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.  The real rate changes daily but is usually close to the target rate desired by the Federal Reserve.  Adjustments to the Federal Funds Target Rate are made by the Federal Open Market Committee (FOMC) usually at regularly scheduled meetings; but can also be adjusted at any time with an emergency meeting.  The rates reported below are based upon the Fed Funds Target Rates on the first day of each respective month.   The History of the Effective Fed Funds Rate (or Market Fed Funds Rate) can be found at http://www.moneycafe.com/personal-finance/fed-funds-rate-history/.

The Federal Reserve’s Federal Open Market Committee (FOMC) plans to hold its next regularly scheduled meetings on January 26-27, March 15-16, April 26-27, June 14-15, July 26-27, September 20-21, November 1-2, and December 13-14, 2016.

Historical Graph of the Federal Funds Rate

 

 

Federal Funds Target Rate

Historical Chart of the Federal Funds Target Rate © 2016 MoneyCafe.com
Source: Federal Reserve Board

The History of the Effective Fed Funds Rate (or Market Fed Funds Rate) can be found at http://www.moneycafe.com/personal-finance/fed-funds-rate-history/.

Reasonable efforts are made to maintain accurate information. However, information could contain errors or inaccuracies and is presented without warranty. No liability is assumed for errors or omissions.