What the Federal Funds Rate Actually Controls

August 14, 2026

The Federal Funds Rate is the interest rate banks charge each other for overnight loans of reserves. The Federal Reserve doesn't set consumer rates directly — but this one number ripples through nearly every other rate tracked on this site.

What moves with it

Credit card APRs, home equity lines of credit, and adjustable-rate products tend to move closely with the Fed Funds Rate. Fixed mortgage rates are influenced by it but track the 10-year Treasury yield more directly, since a 30-year mortgage is a much longer-dated bet than an overnight loan.

Why it's a "Rate" counter, not a "Live" one

The Fed sets a target range at scheduled FOMC meetings — not continuously. Showing it as a ticking number would imply movement that isn't happening. We show the current range and the date it was last set instead.

EVERY NUMBER TRACES TO AN OFFICIAL SOURCE
US CENSUS BUREAU US TREASURY BEA BLS FEDERAL RESERVE FDIC FREDDIE MAC