ECONOMY STUDIOFed Interest Rate
Effective federal funds rate, monthly average, %
In plain English
The Federal Reserve's target range for the federal funds rate is 3.75–4.00%. It took effect on September 17, 2026, when the Fed raised it from 3.50–3.75%.
The federal funds rate is what banks charge each other for overnight loans. When the Fed raises it, borrowing tends to get more expensive across the economy, from credit cards to business loans.
The next decision is due on December 9, 2026 (FOMC meeting Dec 8-9).
Latest figures
| Took effect | Target range |
|---|---|
| September 17, 2026 | 3.75–4.00% |
| December 11, 2025 | 3.50–3.75% |
| October 30, 2025 | 3.75–4.00% |
| September 18, 2025 | 4.00–4.25% |
| December 19, 2024 | 4.25–4.50% |
| November 8, 2024 | 4.50–4.75% |
| September 19, 2024 | 4.75–5.00% |
| July 27, 2023 | 5.25–5.50% |
| May 4, 2023 | 5.00–5.25% |
| March 23, 2023 | 4.75–5.00% |
| February 2, 2023 | 4.50–4.75% |
| December 15, 2022 | 4.25–4.50% |
Questions
What is the Fed interest rate now?
The target range for the federal funds rate is 3.75–4.00%, in effect since September 17, 2026.
When does the Fed decide next?
December 9, 2026. This page updates itself after the decision.
Does the Fed rate decide my mortgage rate?
Not directly. Mortgage rates follow longer-term rates more closely, but the Fed's decisions and outlook move those too.
Sources
- Federal Reserve, FOMC meeting calendars and statements
- Federal funds target range, upper limit (FRED DFEDTARU)
- Federal funds target range, lower limit (FRED DFEDTARL)
- Effective federal funds rate (FRED FEDFUNDS)
Figures come straight from the official data and are checked before publishing. Educational content only, not financial advice.