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 2018, the Federal Reserve’s Federal Open Market Committee (FOMC) plans to hold its meetings on January 30-31, March 20-21, May 1-2, June 12-13, July 31-August 1, September 25-26, November 7-8, and December 18-19.
Federal Funds Target Rate
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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