United States: Federal Funds Rate - Target Rate

Macro

2026-04-30

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

In April 2026, the US federal funds target rate was maintained at 3.75%, flat with the previous quarter, aligning with market consensus. However, this meeting saw 4 dissenting votes, the most since 1992, indicating intensified divisions among officials regarding inflation stickiness and monetary policy stance. With climbing energy prices and the upcoming transition in Fed leadership, the market will face higher uncertainty in the next 3-6 months.

AI Data Insight

In April 2026, the US federal funds target rate was maintained at 3.75%, flat with the previous quarter, aligning with market consensus. However, this meeting saw 4 dissenting votes, the most since 1992, indicating intensified divisions among officials regarding inflation stickiness and monetary policy stance. With climbing energy prices and the upcoming transition in Fed leadership, the market will face higher uncertainty in the next 3-6 months.

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