Federal Funds Rate
The interest rate at which U.S. depository institutions lend reserve balances to each other overnight. The Federal Reserve's primary monetary policy tool.
The federal funds rate is the interest rate at which depository institutions — commercial banks, savings institutions, credit unions — lend and borrow reserve balances from each other on an uncollateralized basis, typically overnight. The Federal Open Market Committee (FOMC) sets a target range for the fed funds rate at its eight scheduled meetings per year, and the New York Fed's trading desk uses open market operations and administered rates (IORB and ONRRP) to keep the effective rate within that range.
Because virtually every other short-term interest rate in the U.S. financial system prices off the fed funds rate — including SOFR, prime rate, and the front end of the Treasury curve — changes to the fed funds rate propagate through the economy via mortgage rates, credit card rates, business loan pricing, and equity valuations. Monetary policy transmission takes 6 to 18 months to work through the system, which is why the Fed is often described as flying by looking in the rearview mirror.
The effective fed funds rate (series ID DFF) is available via /api/v1/indicators/DFF on BullrunData. Fed policy stance — tightening, easing, neutral, or crisis — is a first-class field in the /api/v1/dashboard/summary response.