Federal Reserve
The federal funds rate
The Fed's target range is 3.50–3.75%, in effect since December 11, 2025. The effective rate was 3.63% on September 10, 2026.
Target range
3.50–3.75%
set by the FOMC
Effective fed funds rate
3.63%
September 10, 2026
SOFR
3.62%
September 10, 2026
Last change
−25 bp
effective December 11, 2025
Target range and effective rate since 2000
Before December 2008 the FOMC set a single target; since then a range, shown as a band. Weekly values. Since 2000 the target has been cut 34 times and raised 37 times.
Overnight rates: fed funds, SOFR and the 3-month bill
Three overnight-to-short-term rates that move together. The 3-month Treasury bill yield is what the government pays on its shortest debt.
Rate changes
The 24 most recent changes to the target, by effective date.
| Effective | Change | New target |
|---|---|---|
| Dec 11, 2025 | −25 bp | 3.50–3.75% |
| Oct 30, 2025 | −25 bp | 3.75–4.00% |
| Sep 18, 2025 | −25 bp | 4.00–4.25% |
| Dec 19, 2024 | −25 bp | 4.25–4.50% |
| Nov 8, 2024 | −25 bp | 4.50–4.75% |
| Sep 19, 2024 | −50 bp | 4.75–5.00% |
| Jul 27, 2023 | +25 bp | 5.25–5.50% |
| May 4, 2023 | +25 bp | 5.00–5.25% |
| Mar 23, 2023 | +25 bp | 4.75–5.00% |
| Feb 2, 2023 | +25 bp | 4.50–4.75% |
| Dec 15, 2022 | +50 bp | 4.25–4.50% |
| Nov 3, 2022 | +75 bp | 3.75–4.00% |
| Sep 22, 2022 | +75 bp | 3.00–3.25% |
| Jul 28, 2022 | +75 bp | 2.25–2.50% |
| Jun 16, 2022 | +75 bp | 1.50–1.75% |
| May 5, 2022 | +50 bp | 0.75–1.00% |
| Mar 17, 2022 | +25 bp | 0.25–0.50% |
| Mar 16, 2020 | −100 bp | 0.00–0.25% |
| Mar 4, 2020 | −50 bp | 1.00–1.25% |
| Oct 31, 2019 | −25 bp | 1.50–1.75% |
| Sep 19, 2019 | −25 bp | 1.75–2.00% |
| Aug 1, 2019 | −25 bp | 2.00–2.25% |
| Dec 20, 2018 | +25 bp | 2.25–2.50% |
| Sep 27, 2018 | +25 bp | 2.00–2.25% |
Upcoming FOMC meetings
Statements are released at 2:00 p.m. Eastern on the second day.
- September 15–16, 2026with economic projections
- October 27–28, 2026statement and press conference
- December 8–9, 2026with economic projections
- January 26–27, 2027statement and press conference
What officials expect for the rate: FOMC projections and dot plot.
How the Fed sets the rate
The federal funds rate is the interest rate banks charge each other for overnight loans of reserves. The Federal Open Market Committee meets eight times a year and announces a target range for it. The Fed keeps the market rate inside that range mainly through what it pays banks on their reserves and what it offers money market funds in its reverse repo facility.
The rate matters for the national debt because it sets the floor for the government's short-term borrowing costs. When the target rose from near zero in 2022 to above 5% in 2023, yields on Treasury bills followed within weeks, and interest on the debt climbed with them — see what the interest costs.
Common questions
What is the federal funds rate today?
The Federal Open Market Committee's target range is 3.50–3.75%. The effective federal funds rate — the median rate banks actually paid for overnight loans — was 3.63% on September 10, 2026.
When did the Fed last change interest rates?
The latest change took effect on December 11, 2025: a cut of 25 basis points to 3.50–3.75%. In the 12 months to September 10, 2026 there were 3 changes, −75 basis points in total.
What is the difference between the fed funds rate and SOFR?
The federal funds rate is what banks charge each other for unsecured overnight loans. SOFR, the Secured Overnight Financing Rate, measures overnight borrowing backed by Treasury securities and has replaced LIBOR as the benchmark for many loans. SOFR was 3.62% on September 10, 2026.
How does the Fed rate affect the national debt?
Short-term Treasury bills are priced close to the policy rate — the 3-month bill yielded 0.28 percentage points above the effective rate in the latest week. Because the Treasury rolls over bills every few weeks, a change in the policy rate reaches the government's interest bill within months. The interest page shows what that adds up to.
Sources
- Effective federal funds rate and target rangeFederal Reserve Bank of New York — Effective Federal Funds RateSeptember 10, 2026
- SOFRFederal Reserve Bank of New York — Secured Overnight Financing RateSeptember 10, 2026
- 3-month bill yieldUS Treasury — Daily par yield curve rates
- Meeting calendarFederal Reserve Board — FOMC calendar
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