US FED Target Interest Rate Ceiling
US FED Target Interest Rate Ceiling stood at 4% on Oct 18, 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 Dec 16, 2008 to Oct 18, 2026. The complete series with an interactive chart, free to download.
This indicator in the FED interest rates table
| Indicator | 18-10-2026 | 17-10-2026 | 16-10-2026 | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 11-10-2026 | 10-10-2026 | 09-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Target interest rate - upper bound | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
| Target interest rate - lower bound | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | |
| Effective federal funds interest rate (H.15, from 1954) | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 | 3.88 |
Understanding US FED Target Interest Rate Ceiling
The policy interest rate in the United States defines the upper bound of the target range for unsecured overnight reserve borrowing, as published by the Federal Reserve. This level serves as a policy orientation rather than the rate for a specific transaction, and it does not equal the rate actually paid by banks, businesses, or households. Compared with the floor, it represents the upper limit; compared with the effective federal funds rate, it acts as a target rather than a trading outcome.
This daily series typically changes on the effective date of a policy decision and then remains constant between adjustments. When reading the data, one should observe the position of the effective rate within the corridor rather than interpreting every flat day as a new decision. Comparison with the previous day helps identify the timing of changes, whereas year-on-year comparisons are less useful because policy steps are not seasonal. The difference from the floor also indicates the width of the corridor, though it does not by itself reflect the degree of money market stress.
Frequently asked questions
- Is the ceiling rate the actual transaction interest rate?
- No. This is the upper bound of the target region, while actual transactions are reflected by the effective interest rate.
- Why can the ceiling rate remain unchanged for multiple days?
- This rate only changes when a new policy decision takes effect, so intermediate days often repeat the same value.
- Which indicator should be read alongside the ceiling rate?
- Place it next to the floor rate and the effective interest rate to observe the corridor width as well as the market position within that corridor.