United States: Federal Funds Rate - Target Rate

Macro

2026-07-30

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 funds target rate for July was maintained at 3.75%, remaining unchanged from the previous observation and in line with market consensus, marking the fifth consecutive pause. However, this decision saw a rare hawkish dissent from three committee members who supported a rate hike. Against the backdrop of the new chairman emphasizing data dependence and inflation concerns, future monetary policy still faces tightening risks.

AI Data Insight

The U.S. federal funds target rate for July was maintained at 3.75%, remaining unchanged from the previous observation and in line with market consensus, marking the fifth consecutive pause. However, this decision saw a rare hawkish dissent from three committee members who supported a rate hike. Against the backdrop of the new chairman emphasizing data dependence and inflation concerns, future monetary policy still faces tightening risks.

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