FEDFUNDSFederal Funds Rate (FEDFUNDS) — Current Value & Historical Data
Federal Funds Rate (FEDFUNDS) Chart & Data Table
Gray bands: NBER recessions·Dashed lines: key policy events
What is Federal Funds Rate (FEDFUNDS)?
The federal funds rate is the interest rate at which U.S. depository institutions lend reserve balances to each other overnight, and the primary tool the Federal Reserve uses to conduct monetary policy. The Federal Open Market Committee (FOMC) sets a target range at each of its eight scheduled meetings per year; the effective rate is managed within that range through interest on reserve balances and the overnight reverse repo facility. Changes in the federal funds rate transmit through Treasury yields, mortgage rates, corporate borrowing costs, and eventually inflation and employment. The Fed cut the target to 0–0.25% during the 2008 financial crisis and again in March 2020 for the COVID emergency, before lifting it to 5.25–5.50% in July 2023 — the highest level since 2001 — to fight post-pandemic inflation. Cuts resumed in September 2024 as inflation cooled back toward the Fed's 2% target.
Current Federal Funds Rate (FEDFUNDS) Value
As of June 1, 2026, the current federal funds effective rate is 3.63 Percent. This is the most recent observation available for this series, updated monthly.
Federal Funds Rate Historical Trend
Federal Funds Effective Rate remained flat essentially unchanged month-over-month. Over the past year, federal funds effective rate fell 16.17% from May 2025. In the series' tracked history, the highest recorded value was 19.10 (June 1981), and the lowest was 0.05 (April 2020).
Why Federal Funds Rate matters for government spending
The federal funds rate feeds straight into the cost of financing the national debt. As the Fed raises rates, the Treasury must offer higher yields on new bills and notes, so every dollar of maturing debt that is rolled over reprices upward. With more than $28 trillion in debt held by the public and a large share maturing each year, the rate the FOMC sets is a primary driver of federal interest outlays — which crossed $1 trillion a year in 2024 and now rival defense spending. Rate cuts ease that pressure, but only with a lag as older, lower-coupon debt matures.
Methodology & Source
Source
Federal Reserve Board
Frequency
Monthly
Units
Percent
Notes
Daily Federal Funds Rate from 1928-1954 (https://fred.stlouisfed.org/categories/33951). The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. When a depository institution has surplus bal...
Frequently Asked Questions About Federal Funds Rate (FEDFUNDS)
What is the current federal funds effective rate?
As of June 1, 2026, federal funds effective rate stands at 3.63 Percent.
Where does federal funds effective rate data come from?
Federal Funds Effective Rate data is sourced from the Federal Reserve Economic Data (FRED) system and related U.S. government agencies. Data quality and historical coverage vary by series.
How often is federal funds effective rate updated?
This series is updated according to its publication schedule. Check FRED or the source agency for the most current release calendar.
What is the historical high and low for federal funds effective rate?
In the available data, the highest value was 19.10 Percent in June 1981, and the lowest was 0.05 Percent in April 2020.
How has federal funds effective rate changed over the past year?
Over the past year, federal funds effective rate decreased 16.17%.
See Federal Funds Rate in context
FEDFUNDS is tracked on the Interest Rates dashboard, alongside related indicators and historical context.
View the Interest Rates dashboard →Related government-spending dashboards
How Federal Funds Rate connects to the federal budget across GOVSPENDING.ORG:
Federal Debt
Total public debt, debt held by the public, and intragovernmental holdings.
Receipts vs Outlays
Federal revenue, spending, and the resulting surplus or deficit over time.
Congressional Activity
Recent legislation, appropriations, and fiscal-related bills in Congress.
Interest Expense vs Revenue
How rising debt service costs crowd out federal spending as a share of receipts over time.
Revenue Composition
Federal receipts broken down by source — individual income, corporate, social insurance, excise taxes, and customs duties as shares of total revenue.
Agency Spending (FY 2019 vs FY 2024)
Net outlays by federal agency for FY 2019 and FY 2024, from the Treasury Monthly Treasury Statement. Both nominal and inflation-adjusted comparisons.
Related Indicators
Compare Federal Funds Rate with related indicators
See how Federal Funds Rate stacks up against related series in a side-by-side chart and explainer: