US FED Effective Federal Funds Interest Rate (EFFR)
US FED Effective Federal Funds Interest Rate (EFFR) stood at 3.88% on Oct 15, 2026, according to FRED (Federal Reserve Bank of St. Louis). It is one of the indicators in the FED interest rates table (Value · Daily), with a complete series running from Jul 3, 2000 to Oct 15, 2026. The complete series with an interactive chart, free to download.
This indicator in the FED interest rates table
| Indicator | 15-10-2026 | 14-10-2026 | 13-10-2026 | 09-10-2026 | 08-10-2026 | 07-10-2026 | 06-10-2026 | 05-10-2026 | 02-10-2026 | 01-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Effective federal funds interest rate (EFFR) | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | |
| Secured overnight financing interest rate (SOFR) | 3.89 | 3.88 | 3.89 | 3.87 | 3.87 | 3.88 | 3.9 | 3.89 | 3.88 | 3.87 | |
| Overnight bank funding interest rate (OBFR) | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 |
Understanding US FED Effective Federal Funds Interest Rate (EFFR)
The policy interest rate in the United States represents the effective federal funds rate, capturing the rate on unsecured overnight reserve borrowing in US dollars among eligible participants, as published by the Federal Reserve. This indicator is derived from actual transactions rather than quotes, forecasts, or target levels. It differs from the secured overnight financing rate because it is unsecured and based on the federal funds market, and it differs from the overnight bank funding rate because the latter has a broader scope that includes additional overnight borrowings from other markets. Transaction volumes are excluded from this interest rate figure and must be examined via a separate series.
The most useful reading method is to place the effective federal funds rate between the prevailing floor and ceiling. Comparisons with the previous day help detect reactions following policy decisions or liquidity shifts, whereas year-on-year comparisons are generally less relevant because this is not a series with stable seasonality. Holidays and end-of-period dates may alter transaction composition, but one should not draw inferences from a single observation. If the aggregation methodology or reporting scope changes, comparisons across break points require greater caution than comparisons within the same data regime.
Frequently asked questions
- Is EFFR the rate received on all overnight loans?
- No. This is a representative rate synthesized from a set of eligible transactions, not a uniform price applied across the board.
- Why does the EFFR not always sit right in the middle of the target corridor?
- Its position also depends on reserve supply and demand, access to facilities, and participant structure.
- What should be examined when EFFR deviates from the target rate?
- Check whether the deviation persists, and cross-reference transaction volumes and other overnight interest rates.