Definition
The interest rate banks charge each other for overnight loans. The Fed sets a target range for it.
The story
At the end of every day, some banks have extra cash and some come up short, so they lend to each other overnight. The rate on those loans is the fed funds rate. It's the first domino: when it moves, rates on credit cards, car loans and savings accounts tend to follow.
Why markets watch it
It's the base that most other short-term rates are built on.
IN HISTORICAL DATA
Latest Fed decisions: Wed, Oct 28, 2026 · As expected
- Decision
- Hold
- S&P 500
- +0.3%
- Nasdaq
- +0.3%
- Gold
- Spot $4,035.48/oz, down 0.60%
History, not a prediction. Every row lists its sources.
All Fed decisions →See it in the story
Connects to
The Federal ReserveInterest on reserve balancesRate hike and rate cutBasis pointPrime rateSOFR
Last seen in
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms