United States: Federal Funds Rate - Target Rate

Macro

2026-06-18

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

The U.S. Federal Reserve (Fed) maintained the target cap for the federal funds rate at 3.75% at its June 2026 meeting, holding rates steady for the fourth consecutive time, in line with market expectations. In his debut, the new Chair Kevin Warsh demonstrated a tough anti-inflation stance. The latest dot plot further showed that nearly half of the officials expect rate hikes could resume before the end of the year, driving up U.S. Treasury yields.

AI Data Insight

The U.S. Federal Reserve (Fed) maintained the target cap for the federal funds rate at 3.75% at its June 2026 meeting, holding rates steady for the fourth consecutive time, in line with market expectations. In his debut, the new Chair Kevin Warsh demonstrated a tough anti-inflation stance. The latest dot plot further showed that nearly half of the officials expect rate hikes could resume before the end of the year, driving up U.S. Treasury yields.

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