7-Day AA Financial Commercial Paper Interest Rate

RIFSPPFAAD07NB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.32

Year-over-Year Change

0.00%

Date Range

10/5/2021 - 8/4/2025

Summary

The 7-Day AA Financial Commercial Paper Interest Rate tracks the short-term borrowing costs for high-quality financial institutions. This metric provides critical insight into the liquidity and credit conditions in the financial markets.

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

Commercial paper is an unsecured, short-term debt instrument issued by corporations to fund immediate financial needs. The AA rating indicates a high credit quality, making this rate a key indicator of financial market health and corporate borrowing conditions.

Methodology

The rate is calculated based on the average interest rates for 7-day commercial paper issued by top-rated financial institutions, collected and reported by the Federal Reserve.

Historical Context

Economists and policymakers use this rate to assess short-term credit market conditions and potential economic stress in the financial sector. It serves as a barometer for overall financial market liquidity and corporate financial health.

Key Facts

  • Represents short-term borrowing costs for top-rated financial institutions
  • Provides insight into financial market liquidity
  • Updated regularly by the Federal Reserve
  • Crucial indicator for assessing economic conditions

FAQs

Q: What does the AA rating mean in this context?

A: AA rating indicates a high credit quality, suggesting the issuing institution has a strong ability to meet financial commitments.

Q: How often is this rate updated?

A: The rate is typically updated daily by the Federal Reserve, reflecting current market conditions.

Q: Why is the 7-day commercial paper rate important?

A: It provides a quick snapshot of short-term borrowing costs and overall financial market health.

Q: How do changes in this rate impact businesses?

A: Fluctuations can affect borrowing costs, corporate financing strategies, and overall economic liquidity.

Q: Can individual investors use this information?

A: While primarily used by financial professionals, this rate can provide insights into broader economic trends for informed investors.

Related Trends

Citation

U.S. Federal Reserve, 7-Day AA Financial Commercial Paper Interest Rate [RIFSPPFAAD07NB], retrieved from FRED.

Last Checked: 8/1/2025