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/.
In 2017, the Federal Reserve’s Federal Open Market Committee (FOMC) plans to hold its meetings on January 31/February 1, March 14-15, May 2-3, June 13-14, July 25-26, September 19-20, October 31/November 1, and December 12-13.
Federal Funds Target Rate
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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/.
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