Daily
IRLRECD • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.00
Year-over-Year Change
N/A%
Date Range
12/6/2019 - 8/31/2022
Summary
The Daily Interest Rate series measures the effective federal funds rate, which is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight. This key rate is closely monitored by economists and policymakers as an indicator of the Federal Reserve's monetary policy stance.
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 effective federal funds rate is the interest rate at which banks and other depository institutions lend reserve balances to each other overnight. It is a critical indicator of the Federal Reserve's monetary policy and serves as a benchmark for many other short-term interest rates in the U.S. financial system.
Methodology
The rate is calculated by the Federal Reserve based on data reported by a sample of depository institutions.
Historical Context
The federal funds rate is a key policy tool used by the Federal Reserve to influence broader economic conditions, such as employment and inflation.
Key Facts
- The federal funds rate is set by the Federal Open Market Committee (FOMC).
- The rate is a target range, not a fixed value.
- Changes in the federal funds rate can impact consumer and business borrowing costs.
FAQs
Q: What does this economic trend measure?
A: The Daily Interest Rate series measures the effective federal funds rate, which is the interest rate at which banks and other depository institutions lend reserve balances to each other overnight.
Q: Why is this trend relevant for users or analysts?
A: The federal funds rate is a critical indicator of the Federal Reserve's monetary policy stance and serves as a benchmark for many other short-term interest rates in the U.S. financial system.
Q: How is this data collected or calculated?
A: The rate is calculated by the Federal Reserve based on data reported by a sample of depository institutions.
Q: How is this trend used in economic policy?
A: The federal funds rate is a key policy tool used by the Federal Reserve to influence broader economic conditions, such as employment and inflation.
Q: Are there update delays or limitations?
A: The daily effective federal funds rate is published promptly by the Federal Reserve.
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Citation
U.S. Federal Reserve, Daily Interest Rate (IRLRECD), retrieved from FRED.