United States: Federal Funds Rate - Lower Limit

Macro

2026-04-30

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

In the second quarter (April) of 2026, the lower bound of the US Federal Funds Rate was maintained at 3.5%, flat from the previous value, as the Federal Reserve has continuously held rates steady since the beginning of this year. Impacted by surging energy prices triggered by the geopolitical situation in the Middle East, the FOMC witnessed its most severe decision-making division since 1992. The market consensus expects that until inflationary pressures significantly retreat, the Federal Reserve will maintain the current restrictive interest rate level in the short term.

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AI Data Insight

In the second quarter (April) of 2026, the lower bound of the US Federal Funds Rate was maintained at 3.5%, flat from the previous value, as the Federal Reserve has continuously held rates steady since the beginning of this year. Impacted by surging energy prices triggered by the geopolitical situation in the Middle East, the FOMC witnessed its most severe decision-making division since 1992. The market consensus expects that until inflationary pressures significantly retreat, the Federal Reserve will maintain the current restrictive interest rate level in the short term.

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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