Skip to content

Federal Funds Rate

The federal funds rate is the interest rate at which eligible depository institutions lend reserve balances to one another overnight, with the Federal Reserve setting a target range for the rate through monetary policy.

Why it matters to you

Changes in the Fed's policy rate and expectations for future changes influence borrowing costs, bond yields, currencies, asset valuations and broader financial conditions.

Terms that sit next to this one

Federal Reserve, Interest Rate, Monetary Policy

See the perpetuals front

The tools, the live market and the course.