Federal Funds Effective Rate
Daily
DFF • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.33
Year-over-Year Change
0.00%
Date Range
11/12/2022 - 8/7/2025
Summary
The Daily Federal Funds (DFF) rate represents the effective interest rate for overnight lending between banks in the United States. This critical metric serves as a key benchmark for monetary policy and influences borrowing costs across the entire financial system.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Daily Federal Funds rate reflects the short-term lending market between financial institutions, with the Federal Reserve setting a target range to manage economic conditions. Economists closely monitor this rate as a primary indicator of monetary policy stance and overall financial market liquidity.
Methodology
The rate is calculated daily based on actual transactions between banks, weighted by the volume of overnight lending in the federal funds market.
Historical Context
Policymakers at the Federal Reserve use this rate as a primary tool for implementing monetary policy, adjusting it to control inflation, stimulate economic growth, or cool down an overheating economy.
Key Facts
- Represents the interest rate for overnight interbank lending
- Directly influenced by Federal Reserve monetary policy
- Impacts broader financial market conditions and borrowing costs
FAQs
Q: How does the Daily Federal Funds rate affect consumers?
A: The rate influences consumer borrowing costs, including credit card rates, mortgage rates, and other lending products. Changes can impact the overall cost of borrowing and saving across the economy.
Q: Who determines the Federal Funds rate?
A: The Federal Open Market Committee (FOMC) sets the target range for the federal funds rate during their regular meetings, based on current economic conditions and future projections.
Q: How often is the DFF rate calculated?
A: The rate is calculated and reported daily, reflecting the most recent overnight lending transactions between banks in the federal funds market.
Q: What is the significance of the Federal Funds rate in economic policy?
A: It is a primary tool for implementing monetary policy, helping the Federal Reserve manage inflation, employment, and overall economic stability.
Q: Are there limitations to using the Daily Federal Funds rate?
A: While important, the rate is a short-term indicator and should be considered alongside other economic metrics for a comprehensive understanding of financial conditions.
Related Trends
Overnight Bank Funding Volume
OBFRVOL
Overnight Bank Funding Rate: 1st Percentile
OBFR1
Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, Low
FEDTARCTLLR
Overnight Bank Funding Rate
OBFR
FOMC Summary of Economic Projections for the Fed Funds Rate, Range, Midpoint
FEDTARRM
Secured Overnight Financing Rate: 1st Percentile
SOFR1
Citation
U.S. Federal Reserve, Daily [DFF], retrieved from FRED.
Last Checked: 8/1/2025