United States: Federal Funds Rate - Upper Limit

Macro

2026-04-30

Description

The Federal Funds Rate (FFR) in the United States is defined by a range with an upper and lower limit. The upper limit is typically represented by the Interest Rate on Reserve Balances (IORB), which is the rate paid by the Federal Reserve to commercial banks on their reserve balances held at the Fed.

Prior to 2020, the Federal Reserve differentiated between the Interest on Required Reserves (IORR) and the Interest on Excess Reserves (IOER). However, due to the impact of the COVID-19 pandemic in 2020, the Fed eliminated the reserve requirement. Since both the IOER and IORR rates were set at 0%, the Fed consolidated these two rates into a single rate, the IORB, in 2021.

Published by
Federal Reserve System (Choice)
Frequency
Monthly
Next Update
Hashtags
Finance United States

AI Data Insight

In the second quarter of 2026, the upper bound of the US federal funds rate was maintained at 3.75%, remaining unchanged for several consecutive months and highlighting the Federal Reserve's cautious stance toward sticky inflation. The April policy meeting erupted into the largest division since 1992, leading Wall Street investment banks to significantly delay expectations for a resumption of rate cuts until next year.

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AI Data Insight

In the second quarter of 2026, the upper bound of the US federal funds rate was maintained at 3.75%, remaining unchanged for several consecutive months and highlighting the Federal Reserve's cautious stance toward sticky inflation. The April policy meeting erupted into the largest division since 1992, leading Wall Street investment banks to significantly delay expectations for a resumption of rate cuts until next year.

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Macro
Description

The Federal Funds Rate (FFR) in the United States is defined by a range with an upper and lower limit. The upper limit is typically represented by the Interest Rate on Reserve Balances (IORB), which is the rate paid by the Federal Reserve to commercial banks on their reserve balances held at the Fed.

Prior to 2020, the Federal Reserve differentiated between the Interest on Required Reserves (IORR) and the Interest on Excess Reserves (IOER). However, due to the impact of the COVID-19 pandemic in 2020, the Fed eliminated the reserve requirement. Since both the IOER and IORR rates were set at 0%, the Fed consolidated these two rates into a single rate, the IORB, in 2021.

Published by
Federal Reserve System (Choice)
Frequency
Monthly
Next Update
Hashtags
Finance United States