United States: Federal Funds Rate - Lower Limit

Macro

2026-09-17

Description

The U.S. Federal Funds Rate can be divided into an upper limit and a lower limit. The rate representing the upper bound is typically the Interest Rate on Reserve Balances (IORB), while the rate representing the lower bound is the Overnight Reverse Repurchase Agreement Rate (ON RRP).

Interest Rate on Reserve Balances (IORB): This is the rate paid by the Federal Reserve to commercial banks for reserves held at the Federal Reserve.

Overnight Reverse Repurchase Agreement Rate (ON RRP): This is the rate paid by the Federal Reserve to smaller financial institutions through overnight reverse repurchase operations.

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

AI Data Insight

The latest Q3 2026 data shows that the lower bound of the US federal funds rate was raised from the previous 3.5% to 3.75%, in line with market consensus. This marks the Federal Reserve's first resumption of rate hikes since 2023, primarily in response to inflationary pressures driven by geopolitical conflicts. Most policymakers estimate there is still room for further tightening before the end of the year.

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AI Data Insight

The latest Q3 2026 data shows that the lower bound of the US federal funds rate was raised from the previous 3.5% to 3.75%, in line with market consensus. This marks the Federal Reserve's first resumption of rate hikes since 2023, primarily in response to inflationary pressures driven by geopolitical conflicts. Most policymakers estimate there is still room for further tightening before the end of the year.

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Macro
Description

The U.S. Federal Funds Rate can be divided into an upper limit and a lower limit. The rate representing the upper bound is typically the Interest Rate on Reserve Balances (IORB), while the rate representing the lower bound is the Overnight Reverse Repurchase Agreement Rate (ON RRP).

Interest Rate on Reserve Balances (IORB): This is the rate paid by the Federal Reserve to commercial banks for reserves held at the Federal Reserve.

Overnight Reverse Repurchase Agreement Rate (ON RRP): This is the rate paid by the Federal Reserve to smaller financial institutions through overnight reverse repurchase operations.

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