US FED Target Interest Rate Floor
US FED Target Interest Rate Floor stood at 3.75% 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 - 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 | ||||
| Effective federal funds interest rate (EFFR) | 3.88 | 3.88 | 3.88 | 3.88 |
Understanding US FED Target Interest Rate Floor
The policy interest rate in the United States represents the floor of the target range applied to unsecured overnight reserve borrowing, as published by the Federal Reserve. It is neither a guaranteed minimum yield for all transactions nor a retail deposit rate for the public. Its difference from the ceiling lies in its role of defining the bottom of the corridor, whereas its difference from the interest rate on reserves is that one serves as a target boundary while the other is the return paid on eligible balances.
Fluctuations should be read by effective date, as a new level may appear mid-month and subsequently remain unchanged. Comparing the previous day is suitable for identifying policy adjustments, while year-on-year comparisons tend to obscure the timing of policy shifts. The distance between the effective trading rate and the floor shows whether trading is positioned deep or shallow within the corridor, but this distance is also influenced by liquidity, counterparty structure, and end-of-period conditions, and thus should not be attributed entirely to the policy stance.
Frequently asked questions
- Can the transaction interest rate fall below the floor rate?
- Yes, because the floor rate is the boundary of the target range rather than a commitment applied to all entities and transactions.
- How does the floor rate differ from the interest rate on reserves?
- The floor rate describes the lower bound of the target region, whereas the interest rate on reserves is tied to eligible reserve balances.
- How is the corridor width determined?
- It is the difference between the ceiling rate and the floor rate on the same effective date.