Federal Funds Rate

In the current ample-reserves framework, the Federal Reserve primarily steers the federal funds rate through administered rates such as interest on reserve balances and the overnight reverse repurchase facility.

Changes in the federal funds target range influence other short-term interest rates and broader financial conditions, affecting borrowing and spending decisions over time.

On September 16, 2026, the FOMC raised the target range for the federal funds rate by 0.25 percentage point to 3.75 to 4.00 percent, effective with implementation actions on September 17.

As part of the September 2026 implementation, the Federal Reserve raised interest on reserve balances to 3.90 percent and the primary credit rate to 4.00 percent.