United States: Federal Funds Rate - Lower Limit

Macro

2026-07-30

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

According to the latest data, the lower bound of the US federal funds rate remained at 3.5% in the third quarter of 2026, completely unchanged from the previous quarter. Although holding rates steady this time met market expectations, the July FOMC meeting saw a rare dissent from three committee members strongly advocating for a rate hike. This reflects that under sticky inflation and energy price volatility, there remains a latent risk of resuming rate hikes in the second half of the year.

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AI Data Insight

According to the latest data, the lower bound of the US federal funds rate remained at 3.5% in the third quarter of 2026, completely unchanged from the previous quarter. Although holding rates steady this time met market expectations, the July FOMC meeting saw a rare dissent from three committee members strongly advocating for a rate hike. This reflects that under sticky inflation and energy price volatility, there remains a latent risk of resuming rate hikes in the second half 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