Effective federal funds rate, United States
The effective federal funds rate in the United States was 3.75% in , up 0.12 pp from and down 0.47 pp from a year earlier. Over the latest 12 readings it moved between 3.63% and 4.09%. The next reading is for October 2026. Source: New York Fed, H.15; history from .
Key takeaways
- The effective federal funds rate at 3.75% in beats 75% of readings since (New York Fed).
- Against a ten-year average of 2.42%, the effective federal funds rate is above that norm by 1.33 pp (New York Fed).
- On the effective federal funds rate, the United States ranks 3rd highest of 4 countries (national publishers).
What this indicator is and why it matters
The effective federal funds rate is the interest rate banks pay to borrow reserves from each other overnight without collateral. The Federal Reserve Bank of New York calculates it each business day as the volume-weighted median of those trades, and the Federal Reserve Board publishes it in its H.15 release; the series here is the monthly average of the daily rate.
The Federal Open Market Committee sets a target range for this rate, 25 basis points wide, at eight scheduled meetings a year, and steers the effective rate into that range mainly through the interest it pays on banks' reserves. Almost every short-term rate in the United States, from Treasury bills to bank prime rates and floating-rate loans, moves with it, which is why it is the starting point for reading the cost of money.
Two details matter when reading the chart. The effective rate sits inside the target range, usually a little below its top, so it is not the same number as the target announced after a meeting. And because this is a monthly average, a month in which the Committee changed the range shows a value between the old and new levels; the full effect appears in the next month.
Where it sits in history
The effective federal funds rate is at its highest since , when it stood at 3.88%. Within ten years, the effective federal funds rate beats 69% of readings.
| Window | Latest is higher than | Average | Highest | Lowest |
|---|---|---|---|---|
| Since January 2006 | 75% of readings | 1.81% | 5.33% | 0.05% |
| Last ten years | 69% of readings | 2.42% | 5.33% | 0.05% |
| Last five years | 38% of readings | 3.70% | 5.33% | 0.08% |
- Effective federal funds rate 3.8%
Recent readings
Last five years
- Effective federal funds rate 3.8%
Latest readings
| Period | Value | Change from previous |
|---|---|---|
| 3.75% | +0.12 pp | |
| 3.63% | 0.00 pp | |
| 3.63% | 0.00 pp | |
| 3.63% | 0.00 pp | |
| 3.63% | -0.01 pp | |
| 3.64% | 0.00 pp | |
| 3.64% | 0.00 pp | |
| 3.64% | 0.00 pp | |
| 3.64% | -0.08 pp | |
| 3.72% | -0.16 pp | |
| 3.88% | -0.21 pp | |
| 4.09% | -0.13 pp | |
| 4.22% | -0.11 pp |
Annual averages
By calendar-year average, the effective federal funds rate peaked in (5.14%) and bottomed in (0.08%). 2026 to date: 3.65%, after 4.21% in 2025.
| Year | Average | Low | High | Readings |
|---|---|---|---|---|
| 2026 (part year) | 3.65% | 3.63% | 3.75% | 9 |
| 2025 | 4.21% | 3.72% | 4.33% | 12 |
| 2024 | 5.14% | 4.48% | 5.33% | 12 |
| 2023 | 5.02% | 4.33% | 5.33% | 12 |
| 2022 | 1.68% | 0.08% | 4.10% | 12 |
| 2021 | 0.08% | 0.06% | 0.10% | 12 |
| 2020 | 0.38% | 0.05% | 1.58% | 12 |
| 2019 | 2.16% | 1.55% | 2.42% | 12 |
| 2018 | 1.83% | 1.41% | 2.27% | 12 |
| 2017 | 1.00% | 0.65% | 1.30% | 12 |
| 2016 | 0.40% | 0.34% | 0.54% | 12 |
| 2015 | 0.13% | 0.11% | 0.24% | 12 |
| 2014 | 0.09% | 0.07% | 0.12% | 12 |
| 2013 | 0.11% | 0.08% | 0.15% | 12 |
| 2012 | 0.14% | 0.08% | 0.16% | 12 |
| 2011 | 0.10% | 0.07% | 0.17% | 12 |
| 2010 | 0.17% | 0.11% | 0.20% | 12 |
| 2009 | 0.16% | 0.12% | 0.22% | 12 |
| 2008 | 1.93% | 0.16% | 3.94% | 12 |
| 2007 | 5.02% | 4.24% | 5.26% | 12 |
| 2006 | 4.96% | 4.29% | 5.25% | 12 |
Same measure in other countries
The effective federal funds rate in the United States is above 1 of the other 3 comparable readings. Four countries compared.
| Country | Series | Latest | Period | Change on a year earlier |
|---|---|---|---|---|
| United States | Effective federal funds rate | 3.75% | -0.47 pp | |
| Canada | Bank of Canada policy rate (target for the overnight rate) | 2.25% | September 2026 | -0.25 pp |
| Australia | RBA cash rate target | 4.36% | September 2026 | +0.76 pp |
| United Kingdom | Bank Rate | 3.75% | September 2026 | -0.25 pp |
Link to US banks
When the effective federal funds rate moves, deposit and loan rates follow, and with them bank margins. Median net interest margin, 500 US banks we cover: 3.64% at Q2 2026; the effective federal funds rate: 3.75% in . Net interest margin ranking.
How is it measured?
Monthly average of the daily effective federal funds rate, calculated by the New York Fed and published by the Board in H.15.
New York Fed publishes the effective federal funds rate monthly in H.15, in percent. Code: RIFSPFF_N.M. Monthly basis: each month shows the average of the daily values in that month. Method for the effective federal funds rate.
Questions
How high is the effective federal funds rate in the United States now?
3.75% in (New York Fed), down 0.47 pp on a year earlier.
Is the effective federal funds rate high by historical standards?
The effective federal funds rate beats 75% of readings since ; its peak was 5.33% (), its low 0.05% ().
When is the effective federal funds rate updated?
Monthly, in H.15. Next reading: October 2026.
Where can I check the effective federal funds rate at the source?
New York Fed data, code RIFSPFF_N.M.