As of March 1, 2016, the daily effective federal funds rate (EFFR) is a volume-weighted median of transaction-level data collected from depository institutions in the Report of Selected Money Market Rates (FR 2420).

2 days ago · The federal funds rate is the interest rate charged by banks to borrow from each other overnight. The Federal Reserve influences this rate through monetary policy decisions.

Nov 7, 2024 · In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.

2 days ago · Monetary policy in the United States comprises the Federal Reserve's actions and communications to promote maximum employment, stable prices, and moderate long-term interest rates--the economic goals the Congress has instructed the Federal Reserve to pursue.

The interest rate on reserve balances (IORB rate) is determined by the Board and is an important tool for the Federal Reserve's conduct of monetary policy. For the current setting of the IORB rate, see the most recent implementation note issued by the FOMC.

Press Conference Statement on Longer-Run Goals and Monetary Policy Strategy Principles for Reducing the Size of the Federal Reserve's Balance Sheet

Funding, Credit, Liquidity, and Loan Facilities and Reporting Learn more about the facilities the Federal Reserve has established in response to events related to the COVID-19 pandemic and read reports filed with Congress pursuant to section 13 (3) of the Federal Reserve Act.

Mar 1, 2017 · Money, Interest Rates, and Monetary Policy Why do interest rates matter? What economic goals does the Federal Reserve seek to achieve through its monetary policy? What is forward guidance, and how is it used in the Federal Reserve's monetary policy? Why does the Federal Reserve pay banks interest?

Jul 29, 2021 · The federal funds rate is the interest rate that banks pay to borrow reserve balances overnight. The FOMC has the ability to influence the federal funds rate--and thus the cost of short-term interbank credit--by changing the rate of interest the Fed pays on reserve balances that banks hold at the Fed.

Dec 18, 2024 · The Board of Governors of the Federal Reserve System voted unanimously to lower the interest rate paid on reserve balances to 4.4 percent, effective December 19, 2024.