Federal Funds Rate
Effective federal funds rate.
3.64
Percent
Min
0.05
Max
19.10
Average
4.60
10Y Percentile
66%
3M Change
+0.0%
3-Month
+0.0%
6-Month
-11.0%
12-Month
-15.9%
What this means
The Fed Funds Rate is holding steady at 3.64%, a level in the upper two‑thirds of its historical range. With no recent change, borrowing costs remain predictable for the near term.
When rates sit high but stable, bond prices tend to stay flat while equities may benefit from clear cost expectations. Historically, investors tilt toward sectors that profit from steady credit conditions and avoid long‑duration bonds.
Frequently Asked Questions
What is the current federal funds rate?
The federal funds rate is the interest rate at which banks lend reserves to each other overnight. It is the primary tool the Federal Reserve uses to influence monetary policy and economic activity.
How does the fed funds rate affect the stock market?
Rate hikes tend to weigh on equities by increasing borrowing costs and making bonds more attractive. Rate cuts tend to support equities. However, the reason behind the cut matters — cuts during a recession have different effects than mid-cycle adjustments.
When will the Fed cut rates?
MacroRadar does not predict Fed actions. Instead, we monitor the economic conditions — inflation, employment, growth — that historically precede rate changes. The macro regime dashboard shows whether current conditions are consistent with past cutting or hiking cycles.