Federal Funds Rate Explained: How the Fed Sets Interest Rates
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The federal funds rate is the interest rate banks charge each other for overnight loans of reserves, and the Federal Reserve steers it by setting a target range.
What the federal funds rate is
Banks keep money, called reserves, at the Federal Reserve. A bank that has more than it needs can lend the extra overnight to a bank that has less. The rate on those loans is the federal funds rate. The New York Fed collects the data and publishes the effective federal funds rate, or EFFR, which summarizes what banks actually paid.
Target range versus effective rate
The Fed does not set the federal funds rate directly. The FOMC announces a target range, an upper and a lower limit, and uses its administered rates to keep the effective rate inside it. Two of those are interest on reserve balances and the overnight reverse repo rate.
The target range is a decision that changes at meetings. The effective rate is a daily measurement that can move within the range between meetings.
Why the rate matters beyond banks
Other short-term rates follow it closely, including the prime rate and many variable-rate loans. Longer-term rates, such as mortgage rates and Treasury yields, are set by markets and respond to what traders expect the Fed to do, so they do not move one for one with it.
This paper prints the stored EFFR and target range as the agencies published them. It does not forecast the next decision. The Fed's own statements, linked below, announce each one.
Latest figures related to this topic
- Effective federal funds rate (EFFR) 3.88%
- Target range, as printed with the EFFR 3.75%–4.00%
Stored as the agency published it. This paper does not forecast or compute a change here.
The effective rate and the target range
- Target range 3.75% to 4.00%
- Effective rate (EFFR) 3.88%
Source: Federal Reserve Bank of New York, Markets Data API, effective federal funds rate · as of · retrieved
Cite this
Cite the agency first. This paper is the place you read the figure, as of Oct 9, 2026.
- APA Federal Reserve Bank of New York. (2026, October 9). Effective federal funds rate and target range [Data set]. https://markets.newyorkfed.org/api/rates/unsecured/effr/search.json Retrieved October 13, 2026, via The Fed Gazette, https://fedgazette.com/ledger/#chart-fedfunds-ledger
- MLA Federal Reserve Bank of New York. “Effective federal funds rate and target range.” Markets Data API, effective federal funds rate, data as of 9 Oct. 2026, https://markets.newyorkfed.org/api/rates/unsecured/effr/search.json. Accessed 13 Oct. 2026 via The Fed Gazette, https://fedgazette.com/ledger/#chart-fedfunds-ledger.
- Chicago Federal Reserve Bank of New York. “Effective federal funds rate and target range.” Data as of October 9, 2026. https://markets.newyorkfed.org/api/rates/unsecured/effr/search.json. Retrieved October 13, 2026 via The Fed Gazette, https://fedgazette.com/ledger/#chart-fedfunds-ledger.
Data
| Date | Range low | Range high | EFFR |
|---|---|---|---|
| Dec 16, 2008 | 0.00% | 0.25% | 0.17% |
| Dec 17, 2015 | 0.25% | 0.50% | 0.37% |
| Dec 15, 2016 | 0.50% | 0.75% | 0.66% |
| Mar 16, 2017 | 0.75% | 1.00% | 0.91% |
| Jun 15, 2017 | 1.00% | 1.25% | 1.16% |
| Dec 14, 2017 | 1.25% | 1.50% | 1.41% |
| Mar 22, 2018 | 1.50% | 1.75% | 1.68% |
| Jun 14, 2018 | 1.75% | 2.00% | 1.90% |
| Sep 27, 2018 | 2.00% | 2.25% | 2.18% |
| Dec 20, 2018 | 2.25% | 2.50% | 2.40% |
| Aug 1, 2019 | 2.00% | 2.25% | 2.14% |
| Sep 19, 2019 | 1.75% | 2.00% | 1.90% |
| Oct 31, 2019 | 1.50% | 1.75% | 1.58% |
| Mar 4, 2020 | 1.00% | 1.25% | 1.09% |
| Mar 16, 2020 | 0.00% | 0.25% | 0.25% |
| Mar 17, 2022 | 0.25% | 0.50% | 0.33% |
| May 5, 2022 | 0.75% | 1.00% | 0.83% |
| Jun 16, 2022 | 1.50% | 1.75% | 1.58% |
| Jul 28, 2022 | 2.25% | 2.50% | 2.33% |
| Sep 22, 2022 | 3.00% | 3.25% | 3.08% |
| Nov 3, 2022 | 3.75% | 4.00% | 3.83% |
| Dec 15, 2022 | 4.25% | 4.50% | 4.33% |
| Feb 2, 2023 | 4.50% | 4.75% | 4.58% |
| Mar 23, 2023 | 4.75% | 5.00% | 4.83% |
| May 4, 2023 | 5.00% | 5.25% | 5.08% |
| Jul 27, 2023 | 5.25% | 5.50% | 5.33% |
| Sep 19, 2024 | 4.75% | 5.00% | 4.83% |
| Nov 8, 2024 | 4.50% | 4.75% | 4.58% |
| Dec 19, 2024 | 4.25% | 4.50% | 4.33% |
| Sep 18, 2025 | 4.00% | 4.25% | 4.08% |
| Oct 30, 2025 | 3.75% | 4.00% | 3.87% |
| Dec 11, 2025 | 3.50% | 3.75% | 3.64% |
| Sep 17, 2026 | 3.75% | 4.00% | 3.88% |
| Date | EFFR |
|---|---|
| Sep 29, 2000 | 6.60% |
| Dec 29, 2000 | 5.41% |
| Mar 30, 2001 | 5.29% |
| Jun 29, 2001 | 3.95% |
| Sep 28, 2001 | 2.75% |
| Dec 31, 2001 | 1.52% |
| Mar 29, 2002 | 1.74% |
| Jun 28, 2002 | 1.73% |
| Sep 30, 2002 | 1.85% |
| Dec 31, 2002 | 1.16% |
| Mar 31, 2003 | 1.38% |
| Jun 30, 2003 | 1.45% |
| Sep 30, 2003 | 1.17% |
| Dec 31, 2003 | 0.94% |
| Mar 31, 2004 | 1.05% |
| Jun 30, 2004 | 1.38% |
| Sep 30, 2004 | 1.94% |
| Dec 31, 2004 | 1.97% |
| Mar 31, 2005 | 2.96% |
| Jun 30, 2005 | 3.35% |
| Sep 30, 2005 | 3.93% |
| Dec 30, 2005 | 4.09% |
| Mar 31, 2006 | 5.00% |
| Jun 30, 2006 | 5.05% |
| Sep 29, 2006 | 5.34% |
| Dec 29, 2006 | 5.17% |
| Mar 30, 2007 | 5.30% |
| Jun 29, 2007 | 5.31% |
| Sep 28, 2007 | 4.58% |
| Dec 31, 2007 | 3.06% |
| Mar 31, 2008 | 2.51% |
| Jun 30, 2008 | 2.47% |
| Sep 30, 2008 | 2.03% |
| Dec 31, 2008 | 0.14% |
| Mar 31, 2009 | 0.16% |
| Jun 30, 2009 | 0.22% |
| Sep 30, 2009 | 0.07% |
| Dec 31, 2009 | 0.05% |
| Mar 31, 2010 | 0.09% |
| Jun 30, 2010 | 0.09% |
| Sep 30, 2010 | 0.15% |
| Dec 31, 2010 | 0.13% |
| Mar 31, 2011 | 0.10% |
| Jun 30, 2011 | 0.07% |
| Sep 30, 2011 | 0.06% |
| Dec 30, 2011 | 0.04% |
| Mar 30, 2012 | 0.09% |
| Jun 29, 2012 | 0.09% |
| Sep 28, 2012 | 0.09% |
| Dec 31, 2012 | 0.09% |
| Mar 29, 2013 | 0.09% |
| Jun 28, 2013 | 0.07% |
| Sep 30, 2013 | 0.06% |
| Dec 31, 2013 | 0.07% |
| Mar 31, 2014 | 0.06% |
| Jun 30, 2014 | 0.09% |
| Sep 30, 2014 | 0.07% |
| Dec 31, 2014 | 0.06% |
| Mar 31, 2015 | 0.06% |
| Jun 30, 2015 | 0.08% |
| Sep 30, 2015 | 0.07% |
| Dec 31, 2015 | 0.20% |
| Mar 31, 2016 | 0.25% |
| Jun 30, 2016 | 0.30% |
| Sep 30, 2016 | 0.29% |
| Dec 30, 2016 | 0.55% |
| Mar 31, 2017 | 0.82% |
| Jun 30, 2017 | 1.06% |
| Sep 29, 2017 | 1.06% |
| Dec 29, 2017 | 1.33% |
| Mar 30, 2018 | 1.67% |
| Jun 29, 2018 | 1.91% |
| Sep 28, 2018 | 2.18% |
| Dec 31, 2018 | 2.40% |
| Mar 29, 2019 | 2.43% |
| Jun 28, 2019 | 2.40% |
| Sep 30, 2019 | 1.90% |
| Dec 31, 2019 | 1.55% |
| Mar 31, 2020 | 0.08% |
| Jun 30, 2020 | 0.08% |
| Sep 30, 2020 | 0.09% |
| Dec 31, 2020 | 0.09% |
| Mar 31, 2021 | 0.06% |
| Jun 30, 2021 | 0.08% |
| Sep 30, 2021 | 0.06% |
| Dec 31, 2021 | 0.07% |
| Mar 31, 2022 | 0.33% |
| Jun 30, 2022 | 1.58% |
| Sep 30, 2022 | 3.08% |
| Dec 30, 2022 | 4.33% |
| Mar 31, 2023 | 4.83% |
| Jun 30, 2023 | 5.08% |
| Sep 29, 2023 | 5.33% |
| Dec 29, 2023 | 5.33% |
| Mar 29, 2024 | 5.33% |
| Jun 28, 2024 | 5.33% |
| Sep 30, 2024 | 4.83% |
| Dec 31, 2024 | 4.33% |
| Mar 31, 2025 | 4.33% |
| Jun 30, 2025 | 4.33% |
| Sep 30, 2025 | 4.09% |
| Dec 31, 2025 | 3.64% |
| Mar 31, 2026 | 3.64% |
| Jun 30, 2026 | 3.63% |
| Sep 30, 2026 | 3.88% |
| Oct 9, 2026 | 3.88% |
Frequently asked questions
Does the Fed set the federal funds rate?
The FOMC sets a target range. The effective rate is what banks actually paid, and the Fed uses its administered rates to keep it inside the range.
Who publishes the effective federal funds rate?
The Federal Reserve Bank of New York publishes it each business day, and this paper prints the stored value with its as-of date.
How often does the target range change?
Only when the FOMC decides to change it, which is announced in the statement after a meeting. The effective rate is published every business day.