Federal Funds Rate History: Current Target Range, Highs, Lows, and Data

As of August 10, 2026, the Federal Reserve’s federal funds target range is 3.50% to 3.75%. The FOMC maintained that range after its July 28–29, 2026 meeting; the July 29 decision passed 9–3, with three members preferring a 25-basis-point increase. The new range became effective on July 30 under the Federal Reserve’s convention that policy-rate changes take effect the day after an FOMC meeting concludes.

The latest retrieved daily market observation is different: the effective federal funds rate was 3.63% on July 27, 2026, in the Board of Governors’ DFF series. These are related but distinct numbers. The FOMC sets a target or target range; the effective rate is the market outcome of overnight unsecured federal-funds transactions.

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Data date: Current figures in this article are labeled as of August 10, 2026. Historical FRED and Federal Reserve data can be revised, and newly published daily observations may appear after that date.

Federal funds rate: the current snapshot

For the official policy statement and vote, see the July 29, 2026 FOMC release and the 2026 FOMC release index. The Federal Reserve’s July 2026 Monetary Policy Report provides additional policy context.

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What is the federal funds rate?

The federal funds rate is the interest rate on predominantly overnight, unsecured U.S.-dollar loans of balances held at Federal Reserve Banks. Banks and other eligible institutions use the federal funds market to manage reserve positions and payment needs.

In ordinary financial news, federal funds rate can refer to either of two measurements:

• Federal funds target rate or target range: the policy level or range the FOMC directs the Federal Reserve to maintain.
• Effective federal funds rate, or EFFR: the market rate actually observed in overnight federal-funds transactions. The New York Fed calculates it as a volume-weighted median of reported transactions.

The FOMC sets the target; it does not directly dictate the rate on every transaction. The Federal Reserve steers the market effective rate toward the target using administered interest rates, reserve-management tools, and other implementation measures. The Federal Reserve’s policy-rate explainer and the New York Fed’s EFFR methodology describe the distinction.

Target rate versus effective rate

The effective rate is not necessarily the midpoint of the target range. For example, as of the dates above, the target range was 3.50%–3.75% while the latest retrieved DFF observation was 3.63%. The two numbers describe different things and can diverge because of transaction flows, reserve conditions, and the Federal Reserve’s operating framework.

Why the target became a range instead of a single rate

Before the modern floor system, the Federal Reserve generally described its federal-funds policy objective as a single target level, although historical records also contain ranges, expected levels, and informal operating objectives. In December 2008, the FOMC began expressing the policy objective as a target range, initially 0% to 0.25%.

A range does not mean the Fed has abandoned rate control. It gives the market an operating corridor, while administered rates and reserve-management tools help keep the effective rate inside or near that corridor. The December 2008 FOMC announcement and the Federal Reserve’s forward-guidance timeline document the transition.

Federal funds rate history: major policy cycles

The Federal Reserve’s current Open Market Operations table contains the meeting-level policy actions from 2003 onward. Its historical archive covers earlier periods, including 1990–2002.

Complete FOMC target-change history from 2003 onward

The table below lists the target changes from 2003 forward. Dates before the modern target-range era are shown as FOMC action dates; when a decision was announced at a meeting, the new policy generally became effective the following day. For the official date convention, resulting target, and meeting statement, consult the Federal Reserve’s Open Market Operations table.

A basis point is one-hundredth of a percentage point: 100 basis points equals 1 percentage point. Thus, a 75-basis-point increase means a 0.75-percentage-point increase, not a 75-percentage-point increase.

The 2026 FOMC decisions through July 29 were holds at 3.50%–3.75%. Because a hold does not change the target, it does not add a new row to the rate-change table. The official 2026 FOMC index provides the statements for each meeting.

Historical eras in more detail

1920s through 1954: the market develops

The federal-funds market developed during the 1920s as banks transferred balances held at Federal Reserve Banks to manage reserve positions and payment needs. Daily federal-funds quotations began appearing in newspapers in 1928.

A Federal Reserve Bank of St. Louis research project reconstructed a daily market-rate series from April 1928 through June 1954 using newspaper reports. The standard Board/FRED daily series begins on July 1, 1954. The earlier data are historically valuable, but they are not identical in construction to the modern transaction-based EFFR, so a chart should show a methodological break rather than imply one perfectly comparable series.

During the Great Depression and World War II, trading was thin and rates were often near zero. Wartime interest-rate controls and the relationship between the Treasury and Federal Reserve also make simple comparisons across those decades misleading. See the Federal Reserve History overview and the study of the 1928–1954 reconstructed series.

1954 through the 1960s: postwar normalization

The official daily effective-rate history starts in July 1954. During the 1960s, the Federal Reserve increasingly watched the federal-funds market as an indicator of money-market conditions. Explicit federal-funds-rate targeting was not created in one clean step; the operating objective developed gradually as the Fed’s policy and reserve-management practices changed.

The 1970s and Volcker’s anti-inflation campaign

The 1970s brought high and volatile inflation. The federal funds rate moved into double-digit territory as the Federal Reserve attempted to slow inflation and restrain demand. Under Federal Reserve Chair Paul Volcker, the rate reached the roughly 20% level commonly cited for late 1980. Historical daily data, however, contain observations above 20%, including 22.36% on July 22, 1981 in the RIFSPFFNB historical daily dataset.

Those statements are not contradictory. A rounded historical description, an intended policy level, a monthly average, and an individual daily effective observation are different statistics. Therefore, the question What was the all-time high? has no responsible one-number answer unless the series and frequency are identified.

The 1980s and 1990s: changing operating methods and clearer public targets

Historical records for earlier decades often distinguish an observed market rate from an intended rate. Federal Reserve staff reconstructed many intended federal-funds-rate values from meeting records and market reports. The historical documentation warns that many values before the mid-1989 period do not represent an officially announced FOMC target in the modern sense.

By the early 1990s, the Federal Reserve was operating primarily through open-market management of reserve supply, with the federal funds rate serving as the main policy target. But a researcher should not present every pre-1989 historical value as if it had been announced with the same precision and transparency as a modern target range. The FRASER historical memorandum explains these limitations.

2001 through 2003: easing after the technology boom

The FOMC lowered the target from 6.50% in 2000 to 1.25% in late 2002 and then to 1.00% on June 25, 2003. This episode is a useful example of why a meeting-level target table is preferable to a monthly average when a reader needs exact policy dates.

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2004 through 2006: a measured tightening cycle

The Fed raised the target in a sequence of 25-basis-point increases, taking it from 1.00% in June 2004 to 5.25% in June 2006. The action table records each move. A monthly effective-rate series can show the broad direction, but it may blend a rate before and after an individual meeting.

2007 through 2008: the financial crisis

The FOMC cut the target from 5.25% in September 2007 to a 0%–0.25% target range in December 2008 as financial stress intensified. The Fed also moved beyond conventional rate changes, using large-scale asset purchases and forward guidance. The Federal Reserve History account of the Great Recession describes the rate-cut sequence and crisis response.

2008 through 2015: the zero-lower-bound period

The target range stayed at 0%–0.25% until December 2015. Calling this period a zero-rate period is convenient shorthand, but it should not be interpreted as saying every federal-funds transaction occurred at exactly 0%. The effective rate was generally a small positive number within or near the range.

Because conventional rate cuts had reached the effective lower bound, the Fed relied more heavily on asset purchases and forward guidance. The Federal Reserve History review covers the aftermath and the policy tools used during the period.

2015 through 2018: normalization

The first increase after the zero-lower-bound period took the range to 0.25%–0.50% in December 2015. By December 2018, the range had reached 2.25%–2.50% through a series of gradual increases.

2019: insurance cuts

The FOMC reduced the range three times in 2019: to 2.00%–2.25% effective August 1, to 1.75%–2.00% effective September 19, and to 1.50%–1.75% effective October 31. These moves are often described as insurance cuts because they occurred before the much larger COVID-19 response.

2020: the pandemic emergency

The FOMC cut the range to 1.00%–1.25% effective March 4, 2020, and then to 0%–0.25% effective March 16. The Federal Reserve’s historical table includes a correction clarifying that the first emergency cut was announced on March 3 and became effective March 4, rather than being dated March 3 as the effective policy change.

2022 through 2023: the fastest recent tightening cycle

Beginning in March 2022, the FOMC raised the range from 0.25%–0.50% to 5.25%–5.50% by July 2023. Four of the 2022 increases were 75 basis points. This is a 0.75-percentage-point move each time, not a 75-percentage-point move.

2024 through August 10, 2026: easing and a plateau

The FOMC cut the range three times in 2024: by 50 basis points to 4.75%–5.00% effective September 19, then by 25 basis points to 4.50%–4.75% effective November 8, and by another 25 basis points to 4.25%–4.50% effective December 19.

It cut three more times in 2025: to 4.00%–4.25% effective September 18, to 3.75%–4.00% effective October 30, and to 3.50%–3.75% effective December 11. As of August 10, 2026, the range had been held at 3.50%–3.75% at all 2026 decisions through July 29.

What were the highest and lowest federal funds rates?

Highest rate: identify the measurement first

The safest summary is:

• Commonly cited policy-era peak: approximately 20% during the Volcker anti-inflation period in late 1980.
• Historical daily effective observation: 22.36% on July 22, 1981 in the RIFSPFFNB dataset.
• Highest monthly average: must be calculated from the monthly FEDFUNDS series and should not be substituted for either a daily observation or an intended policy rate.

The 22.36% observation is not evidence that the FOMC announced a modern target of 22.36%. It is a value in a historical daily effective-rate dataset. For a citable claim, name the source, series ID, date, and frequency.

Lowest rate: target range versus market observation

The lowest modern FOMC target range was 0%–0.25%, first adopted in December 2008 and used again during the COVID-19 emergency beginning in March 2020. The lower bound was 0%, but the target was a range rather than a single rate.

The lowest effective rate depends on the historical series and period selected. Effective transactions were generally positive during the 2008–2015 zero-lower-bound period. The reconstructed Depression-era data also contain near-zero observations, but thin trading, wartime controls, and methodological differences make an all-time comparison less straightforward.

How the Federal Reserve implements the target

The operating system behind the federal funds rate has changed substantially over time.

Before 2008: scarce reserves

In the pre-2008 framework, reserves were relatively scarce. The Federal Reserve used open-market operations to add or drain reserves, influencing their scarcity and therefore the overnight federal-funds rate. The rate moved as institutions adjusted their reserve positions.

After 2008: ample reserves and administered rates

After the financial crisis, the banking system held much larger reserve balances. In an ample-reserves, or floor-system, framework, the Fed relies more on administered rates and standing facilities than on making reserves scarce. Interest paid on reserve balances helps establish a floor under rates available to eligible institutions, while the overnight reverse-repurchase facility helps reinforce the lower portion of the operating range.

The Federal Reserve’s policy-rate explainer, its history of interest on reserves, and the Board’s operating-system history explain why the Fed can guide the effective rate without mechanically fixing every transaction.

How federal funds rate changes affect households, investors, and the economy

The federal funds rate is an overnight institutional funding rate, not the rate most consumers pay or receive. Its changes influence other rates, financial conditions, and spending, but pass-through is neither instantaneous nor one-for-one.

For personal-finance decisions, use the federal funds rate as a directional indicator. Compare the actual APR, yield, reset formula, fees, maturity, and credit risk of the product you are evaluating.

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Federal funds rate versus other commonly confused rates

The New York Fed’s reference-rate hub provides separate information for EFFR and SOFR. Do not replace one with the other in a historical chart.

How far back does reliable federal funds rate history go?

There are three useful answers, depending on what you mean by history:

1. Modern standard daily effective-rate data: the Board/FRED DFF series begins July 1, 1954.
2. Reconstructed daily market-rate history: a Federal Reserve Bank of St. Louis research series extends from April 1928 through June 1954 using newspaper quotations.
3. Modern-style announced target history: it is much shorter and less uniform than the market-rate history. Explicit federal-funds-rate targeting developed gradually during the 1970s, and pre-mid-1989 intended-rate records include historical reconstruction and judgment rather than a consistently announced target range.

Consequently, a chart covering 1928–2026 should label the pre-1954 portion as reconstructed historical market data and should avoid implying that a modern, fully comparable FOMC target series exists with equal precision across the entire period.

Which federal funds rate series should you use?

How to download and cite the data

For daily effective-rate data

1. Open the DFF series page.
2. Check the series description, units, frequency, observation dates, and source institution.
3. Use the page’s download-data controls or the DFF table-data page for a machine-readable table.
4. Record the series ID, retrieval date, frequency, units, and whether the values are effective rates rather than policy targets.

DFF is daily, not seasonally adjusted, percent data beginning July 1, 1954 in the retrieved table. The New York Fed’s EFFR page is the best source for the methodology and current reference-rate publication. In the retrieved data used for this article, the EFFR table ran through July 24, 2026, while DFF had an observation through July 27, 2026.

For monthly and annual analysis

1. Use FEDFUNDS for the monthly average of daily effective rates.
2. Use the FEDFUNDS table-data page to download the observations.
3. Do not use a monthly observation to date an individual FOMC decision. A month can contain two different target regimes.

For target-range charts

Download DFEDTARL for the lower limit and DFEDTARU for the upper limit. Plot them as two boundaries and label them as daily target-range limits. If you overlay them with FEDFUNDS, explain that the target series are daily policy boundaries while FEDFUNDS is a monthly average market rate.

For a long-run chart

A defensible long-run chart can show DFF from 1954 onward, the reconstructed pre-1954 series separately or with a visible break, and DFEDTARL/DFEDTARU for the modern target-range period. Include a legend identifying each series’ frequency, statistical meaning, source institution, and retrieval date. If you add recession shading, identify the recession series and its source rather than treating shaded periods as part of the rate data.

Decision dates, effective dates, and observation dates

Rate history contains several dates that are easy to confuse:

• Announcement or decision date: when the FOMC releases its decision.
• Effective date: when the new policy rate applies. The Board says target-range changes are effective the day after the FOMC meeting concludes.
• Market observation date: the date assigned to the realized EFFR or DFF observation.
• FRED monthly observation: a monthly average that may combine multiple daily rates and multiple policy regimes.

For example, the March 2020 emergency cut was announced on March 3 and became effective March 4; the second was announced on March 15 and became effective March 16. For exact historical event timing, use the FOMC action table and daily target or effective-rate data together.

Common mistakes when reading federal funds rate history

• Calling one unlabeled line the federal funds rate: identify whether it is a target, effective rate, monthly average, or reconstructed market observation.
• Using only FEDFUNDS: monthly averages are excellent for long-run analysis but hide the precise day of a cut or increase.
• Reporting a current rate without a date: the target can change at any meeting, and daily effective data are published with a lag.
• Calling 0%–0.25% zero: use the complete target range and explain that the effective market rate can be positive.
• Calling 20% the unquestioned all-time high: distinguish a rounded policy-era description from a daily effective observation such as 22.36% in the RIFSPFFNB dataset.
• Treating pre-1954 data as seamless modern EFFR data: mark the reconstructed historical series and its different methodology.
• Equating the federal funds rate with SOFR: one is unsecured federal-funds financing; the other is secured Treasury repo.
• Assuming mortgage rates move one-for-one: mortgages, especially fixed-rate mortgages, depend heavily on longer-term market rates and expectations.
• Ignoring revisions: save the retrieval date and preserve the original series ID and metadata with any chart or analysis.

Frequently Asked Questions

What is the federal funds rate as of August 10, 2026?

The FOMC target range was 3.50% to 3.75% as of August 10, 2026. The latest retrieved daily DFF observation was an effective federal funds rate of 3.63% on July 27, 2026. The target range is the Fed’s policy objective; the effective rate is the market outcome.

Is the federal funds rate the same as the Fed rate?

Usually, people use Fed rate or federal funds rate to mean the FOMC target rate or target range. Technically, the FOMC sets the target or range, while the effective federal funds rate is calculated from overnight market transactions.

What is the difference between the target rate and the effective federal funds rate?

The target or target range is the policy level the FOMC directs the Federal Reserve to maintain. The effective federal funds rate is the realized overnight unsecured market rate, calculated by the New York Fed from reported transactions. It may differ from the target midpoint.

What was the highest federal funds rate in history?

The answer depends on the measurement. The commonly cited Volcker-era policy peak was approximately 20% in late 1980. A historical daily effective-rate dataset contains a 22.36% observation on July 22, 1981. Those are not interchangeable claims because they refer to different series or concepts.

What was the lowest federal funds rate?

The lowest modern FOMC target range was 0%–0.25%, first adopted in December 2008 and used again from March 2020. The lowest effective market observation depends on the dataset and period; a target range of 0%–0.25% does not mean every transaction occurred at exactly zero.

When was the federal funds rate zero?

The Fed’s target range was 0%–0.25% from December 2008 until December 2015, and again from March 2020 until the tightening cycle that began in March 2022. It is more precise to describe those periods as a zero-lower-bound or 0%–0.25% target-range period rather than saying the market rate was exactly zero.

Does the federal funds rate determine mortgage rates?

No. It influences financial conditions, but fixed mortgage rates are driven largely by longer-term Treasury yields, mortgage-backed securities, inflation expectations, investor demand, lender costs, and credit conditions. Adjustable-rate mortgages and home-equity lines are generally more directly sensitive to short-term benchmarks.

Is SOFR the same as the federal funds rate?

No. SOFR measures secured overnight Treasury-repurchase financing. The effective federal funds rate measures unsecured overnight federal-funds transactions. They may move closely together, but they are different benchmarks and should not be substituted in a historical series.

Where can I download the full federal funds rate history?

Use FRED’s DFF series for daily effective rates, FEDFUNDS for monthly average effective rates, and DFEDTARL and DFEDTARU for the lower and upper target-range limits. Use the Federal Reserve’s Open Market Operations table and archive for meeting-level target changes. For pre-1954 history, use the St. Louis Fed’s reconstructed 1928–1954 series and label it as reconstructed market data.

Why do different websites show different federal funds rates?

They may be reporting different concepts: the FOMC target range, the effective rate, a daily series, a monthly average, a historical intended rate, or even another benchmark such as SOFR, the discount rate, or the prime rate. Check the series name, date, frequency, units, source institution, and methodology.

When did the Federal Reserve first begin targeting the federal funds rate?

There is no single universally correct start date. The federal-funds market emerged in the 1920s, the Fed increasingly monitored it during the 1960s, and explicit federal-funds-rate targeting developed gradually during the 1970s. Publicly announced target practices became clearer by the early 1990s, while the modern target-range framework began in December 2008.

The Bottom Line

The most important fact about federal funds rate history is that target and effective are not synonyms. As of August 10, 2026, the FOMC target range was 3.50%–3.75%, while the latest retrieved DFF effective-rate observation was 3.63% on July 27, 2026. Use the FOMC’s Open Market Operations table for policy changes, DFF or EFFR for daily market rates, FEDFUNDS for monthly averages, and DFEDTARL/DFEDTARU for target-range boundaries. Always cite the series, frequency, date, and retrieval date—especially when discussing historical highs, lows, or pre-1954 data.

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