Federal Funds Rate

Source: FRED (FEDFUNDS) | Frequency: monthly | Last updated: April 9, 2026

What This Means for You

When the Federal Funds Rate is at 3.64%, borrowing costs for mortgages, auto loans, and credit cards tend to be higher than when rates are lower. Savings account and CD rates may also reflect this level, which can benefit savers. For example, a credit card with a rate tied to prime (currently prime + a margin) typically adjusts within one to two billing cycles after a Fed rate change. (Source: Federal Reserve)

10-Year History

Historical Context

Over the past 10 years, the Federal Funds Rate has ranged from a low of 0.05% in April 2020 to a high of 5.33% in August 2023, with an average of approximately 2.29%. The current value of 3.64% is in the upper portion of its 10-year range. (Source: FRED via FRED)

Related Rates Indicators

The Federal Funds Rate is part of the rates category. Related indicators include: 10-Year Treasury Yield (currently 4.33%), 2-Year Treasury Yield (currently 3.81%), 30-Year Mortgage Rate (currently 6.46%), 30-Year Treasury Yield (currently 4.90%). The Federal Funds Rate sets the floor for short-term borrowing costs, while the 10-Year Treasury yield reflects longer-term expectations. When the Fed raises its target rate, short-term yields typically respond quickly, but long-term yields may move independently based on inflation expectations and economic outlook. The spread between long and short-term rates (the yield curve) is closely watched as a recession indicator. The prime rate moves in lockstep with the Fed Funds Rate, directly affecting variable-rate consumer loans. (Source: FRED)

What to Watch

Economists typically watch Federal Open Market Committee (FOMC) meeting statements and minutes for signals about the future direction of rates. The Fed publishes a dot plot quarterly, showing individual policymakers' rate expectations. Changes in the Fed Funds Rate typically signal broader shifts in monetary policy. The next FOMC meetings are listed on the Federal Reserve's public calendar. Historical patterns do not guarantee future outcomes. (Source: Federal Reserve)

Limitations of This Data

The effective Federal Funds Rate is a volume-weighted median of overnight lending transactions, reported monthly. It may not reflect the rate on any single transaction. The target range set by the FOMC is a policy goal, and the effective rate can vary within and occasionally outside that range. (Source: Federal Reserve) This data is released monthly and reflects conditions as of the most recent reporting period. Economic data is frequently revised as more complete information becomes available; initial releases may differ significantly from final figures. This indicator measures one dimension of the economy and should be considered alongside other data for a more complete picture. (Source: FRED)

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