Effective federal funds rate
The effective federal funds rate is 3.88% as of Nov 3, 2026, unchanged from a month earlier.
Over the past year it has risen by 0.01 percentage points. The latest reading is higher than 44% of all readings since July 1954. It was last this low in November 2025.
- Latest
- 3.88%
- 1 month ago
- 3.88%
- 1 year ago
- 3.87%
- Change over 1 year
- +0.01 pp
- History percentile
- 45th
- History since
- July 1954
What it is
The interest rate at which banks lend reserves to each other overnight, calculated as a volume-weighted median of actual trades. It trades within the target range set by the Federal Open Market Committee.
Why it matters for investors
It is the anchor for short-term interest rates in the US and, through them, for borrowing costs, the dollar and the valuation of almost every asset.
How to read it
Moves in this rate follow Fed decisions. Between meetings it usually stays within a few basis points of the same level. To see what markets expect next, compare it with 2-year Treasury yields.
Method and sources
Source: Federal Reserve Bank of New York, retrieved from FRED, Federal Reserve Bank of St. Louis (series DFF).
This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
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