Fed funds rate (effective)
The effective federal funds rate — the U.S. policy rate the Fed steers. One of the most influential numbers for global rates, FX, and equities.
Key points
- The U.S. policy rate steered by the Fed (effective)
- Hikes = tightening, cuts = easing
- The U.S.–Japan rate gap drives USD/JPY
How to read it
The Fed steers it via hikes and cuts. Higher = tightening (curb inflation), lower = easing (support growth). The U.S.–Japan rate gap is a key driver of USD/JPY. Read both the level and the direction.
Trend
FOMC target range for the federal funds rate — every change
The policy-rate range set by the Federal Open Market Committee (FOMC). Changes (32) since the current upper/lower-bound framework began on December 16, 2008, listed by effective date.
| Effective date | Target range | Change |
|---|---|---|
| 2026-09-17 | 3.75–4.00% | +25bp |
| 2025-12-11 | 3.50–3.75% | −25bp |
| 2025-10-30 | 3.75–4.00% | −25bp |
| 2025-09-18 | 4.00–4.25% | −25bp |
| 2024-12-19 | 4.25–4.50% | −25bp |
| 2024-11-08 | 4.50–4.75% | −25bp |
| 2024-09-19 | 4.75–5.00% | −50bp |
| 2023-07-27 | 5.25–5.50% | +25bp |
| 2023-05-04 | 5.00–5.25% | +25bp |
| 2023-03-23 | 4.75–5.00% | +25bp |
| 2023-02-02 | 4.50–4.75% | +25bp |
| 2022-12-15 | 4.25–4.50% | +50bp |
| 2022-11-03 | 3.75–4.00% | +75bp |
| 2022-09-22 | 3.00–3.25% | +75bp |
| 2022-07-28 | 2.25–2.50% | +75bp |
| 2022-06-16 | 1.50–1.75% | +75bp |
| 2022-05-05 | 0.75–1.00% | +50bp |
| 2022-03-17 | 0.25–0.50% | +25bp |
| 2020-03-16 | 0.00–0.25% | −100bp |
| 2020-03-04 | 1.00–1.25% | −50bp |
| 2019-10-31 | 1.50–1.75% | −25bp |
| 2019-09-19 | 1.75–2.00% | −25bp |
| 2019-08-01 | 2.00–2.25% | −25bp |
| 2018-12-20 | 2.25–2.50% | +25bp |
| 2018-09-27 | 2.00–2.25% | +25bp |
| 2018-06-14 | 1.75–2.00% | +25bp |
| 2018-03-22 | 1.50–1.75% | +25bp |
| 2017-12-14 | 1.25–1.50% | +25bp |
| 2017-06-15 | 1.00–1.25% | +25bp |
| 2017-03-16 | 0.75–1.00% | +25bp |
| 2016-12-14 | 0.50–0.75% | +25bp |
| 2015-12-16 | 0.25–0.50% | +25bp |
| 2008-12-16 | 0.00–0.25% | — |
Year by year
Shows the level (%) from 2016-10 to 2026-09, grouped by calendar year.
| Year | Average | Year-end | High | Low |
|---|---|---|---|---|
| 2026 (months 1–9) | 3.65% | 3.75% | 3.75% | 3.63% |
| 2025 | 4.21% | 3.72% | 4.33% | 3.72% |
| 2024 | 5.14% | 4.48% | 5.33% | 4.48% |
| 2023 | 5.02% | 5.33% | 5.33% | 4.33% |
| 2022 | 1.68% | 4.10% | 4.10% | 0.08% |
| 2021 | 0.08% | 0.08% | 0.10% | 0.06% |
| 2020 | 0.38% | 0.09% | 1.58% | 0.05% |
| 2019 | 2.16% | 1.55% | 2.42% | 1.55% |
| 2018 | 1.83% | 2.27% | 2.27% | 1.41% |
| 2017 | 1.00% | 1.30% | 1.30% | 0.65% |
| 2016 (months 10–12) | 0.45% | 0.54% | 0.54% | 0.40% |
Recent trend
| Period | Value | Change |
|---|---|---|
| 2026-09-01 | 3.75 | +0.12 |
| 2026-08-01 | 3.63 | 0 |
| 2026-07-01 | 3.63 | 0 |
| 2026-06-01 | 3.63 | 0 |
| 2026-05-01 | 3.63 | -0.01 |
| 2026-04-01 | 3.64 | 0 |
| 2026-03-01 | 3.64 | 0 |
| 2026-02-01 | 3.64 | 0 |
| 2026-01-01 | 3.64 | -0.08 |
| 2025-12-01 | 3.72 | -0.16 |
| 2025-11-01 | 3.88 | -0.21 |
| 2025-10-01 | 4.09 | -0.13 |
FAQ
What is the U.S. policy rate (the FOMC target range) now?
Fed funds rate (effective): what is the latest reading?
What is the fed funds rate?
Why does it matter abroad?
Sources (primary)
This article is an independent summary based on the official U.S. data below. Please verify the latest and exact details with the official sources.
- FRED (series page)：FEDFUNDS
- Source agency：U.S. Federal Reserve
- FRED last updated：2026-10-01 15:16:52-05
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