United States: Federal Funds Rate - Target Rate

Macro

2026-03-19

Description

The Federal Funds Target Rate is set by the Federal Open Market Committee (FOMC) and serves as the target range for the interest rate at which commercial banks lend to each other overnight. The Federal Reserve (Fed) uses this rate to guide the liquidity and borrowing costs in the economy. By influencing the federal funds rate, the Fed aims to achieve its monetary policy objectives, such as controlling inflation and promoting maximum employment.

Published by
Federal Reserve System (Choice)
Frequency
Aperiodically
Next Update

AI Data Insight

In Q1 2026, the US federal funds target rate remained at 3.75%, flat compared to the previous value, fully in line with market expectations. Affected by the situation in the Middle East and surging oil prices, the Federal Reserve revised up its full-year inflation forecast, but the dot plot still maintained the estimate of a 1 quarter-point rate cut this year. Caught between a resilient economy and stubborn inflation, policy is expected to maintain a highly wait-and-see approach in the short term.

AI Data Insight

In Q1 2026, the US federal funds target rate remained at 3.75%, flat compared to the previous value, fully in line with market expectations. Affected by the situation in the Middle East and surging oil prices, the Federal Reserve revised up its full-year inflation forecast, but the dot plot still maintained the estimate of a 1 quarter-point rate cut this year. Caught between a resilient economy and stubborn inflation, policy is expected to maintain a highly wait-and-see approach in the short term.

Description

The Federal Funds Target Rate is set by the Federal Open Market Committee (FOMC) and serves as the target range for the interest rate at which commercial banks lend to each other overnight. The Federal Reserve (Fed) uses this rate to guide the liquidity and borrowing costs in the economy. By influencing the federal funds rate, the Fed aims to achieve its monetary policy objectives, such as controlling inflation and promoting maximum employment.

Published by
Federal Reserve System (Choice)
Frequency
Aperiodically
Next Update