United States: Federal Funds Rate - Lower Limit

Macro

2026-06-18

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 value for the lower bound of the US federal funds rate in the second quarter of 2026 was reported at 3.5%, remaining flat from the previous value and in line with the market's original expectation of holding steady. However, under the leadership of the new Chair, Kevin Warsh, the Federal Reserve significantly removed the easing bias from its statement and released hawkish signals in the dot plot. As inflation remains persistently high due to energy shocks, the market is repricing the risk of potential rate hikes before the end of the year.

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AI Data Insight

The latest value for the lower bound of the US federal funds rate in the second quarter of 2026 was reported at 3.5%, remaining flat from the previous value and in line with the market's original expectation of holding steady. However, under the leadership of the new Chair, Kevin Warsh, the Federal Reserve significantly removed the easing bias from its statement and released hawkish signals in the dot plot. As inflation remains persistently high due to energy shocks, the market is repricing the risk of potential rate hikes 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