The Federal Reserve announced monthly data for April this afternoon. The Fed Funds “Effective Rate” for April 2020 was 0.05%, the lowest reported monthly rate in history dating back to July 1954. The Effective Federal Funds Rate is the real interest rate at which depository institutions actually lend balances at the Federal Reserve to other depository institutions overnight. This Actual Rate changes daily but is usually close to the Fed Funds Target Rate or within the range desired by the Federal Reserve. The previous historic low for the effective rate was 0.07% for a few months in 2011 and 2014.
The Fed Funds “Target Rate” remains in a range from 0.00% to 0.25% since March 16, 2020. This is what is commonly known and reported as the Fed Funds Rate which is the short-term rate objective or target of the Federal Reserve Board. Also known as the Intended Federal Funds Rate, it can be expressed as a specific rate or as a range of rates.