Indicator · updated with every release
Fed funds rate today
The interest rate banks charge each other for overnight unsecured loans of reserves. The Fed sets a target range for it, and it’s the rate most people mean by “the Fed funds rate”.
The full Effective Fed funds rate chart is in Pro, with its whole history, ranges, overlays and alerts, next to 111 other charts.
What it is
The effective federal funds rate (EFFR) is published every business day by the New York Fed. The Fed steers it inside its target range mainly by setting the interest it pays on bank reserves (IORB, now 3.90%). In September 2026 the Fed raised its target range to 3.75–4.00%, its first hike since 2023.
Why it matters for liquidity
The policy rate sets the price of money for the whole financial system. Higher rates make borrowing more expensive and tend to slow credit and liquidity growth; cuts do the opposite. Markets look ahead, so the 2-year Treasury yield shows where traders expect the rate to go.
Questions
What is the Fed funds rate now?
The effective Fed funds rate was 3.88% on 30 October 2026, up 0.01 points on a year earlier.
What is interest on reserve balances (IORB)?
The rate the Fed pays banks on the reserves they hold with it, now 3.90%. Banks have little reason to lend reserves for less, so it anchors the Fed funds rate.
Related
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Start free trialGeneral information only, not financial advice. Data can be delayed, revised or wrong. Sources and credits.