Federal Reserve Rate Tracker
Real-time Fed funds rate monitoring and free financial calculators
Fed Funds Rate
3.5% - 3.75%
Target Range
Prime Rate
6.75%
Bank Prime Loan Rate
30-Year Mortgage
6.22%
Average Fixed Rate
15-Year Mortgage
5.54%
Average Fixed Rate
29
days remaining
Fed Funds Rate History (2022-2025)
Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and view amortization schedule.
Student Loan Calculator
Estimate your student loan payments with different repayment plans and see your payoff date.
FOMC Meeting Schedule
Complete 2025-2026 Federal Reserve meeting dates, rate decisions, and economic projections.
Frequently Asked Questions About Fed Interest Rates
What is the fed interest rate?
The fed interest rate, also known as the federal funds rate, is the interest rate at which banks lend money to each other overnight. Currently, the Federal Reserve has set the target range at 3.5% to 3.75%. This rate influences all other interest rates in the economy, including mortgage rates, credit card rates, and savings account yields.
What is the current fed interest rate?
The current fed interest rate target range is 3.5% to 3.75%, as set by the Federal Open Market Committee (FOMC). The prime rate, which banks use as a benchmark for consumer loans, is currently 6.75%.
When is the next fed interest rate decision?
The Federal Reserve announces interest rate decisions at the conclusion of each FOMC meeting, which occurs 8 times per year. Check our FOMC Meeting Schedule page for the complete 2025-2026 calendar with exact dates, expected rate decisions, and whether a press conference is scheduled.
How does the fed interest rate affect mortgage rates?
While the Fed doesn't directly set mortgage rates, changes to the federal funds rate influence them. When the Fed raises rates, mortgage rates typically increase. Currently, the 30-year fixed mortgage rate averages 6.22% and the 15-year fixed rate averages 5.54%. Use our free mortgage calculator to see how rate changes affect your monthly payment.
Why does the Federal Reserve change interest rates?
The Federal Reserve adjusts interest rates to achieve its dual mandate: maximum employment and stable prices (2% inflation target). When inflation is high, the Fed raises rates to slow spending and reduce prices. When the economy is weak, the Fed lowers rates to encourage borrowing and stimulate growth.
What is the difference between the fed funds rate and the prime rate?
The federal funds rate is what banks charge each other for overnight loans, currently 3.5%-3.75%. The prime rate is what banks charge their best customers for loans, typically 3% above the fed funds rate upper bound. The current prime rate is 6.75%.
How often does the Fed meet to decide on interest rates?
The Federal Open Market Committee (FOMC) meets 8 times per year, approximately every 6-7 weeks. Four of these meetings include updated economic projections and a press conference by the Fed Chair. Rate decisions are announced at 2:00 PM Eastern Time on the final day of each meeting.
What happens when the Fed cuts interest rates?
When the Fed cuts rates, borrowing becomes cheaper across the economy. Mortgage rates, auto loans, and credit card rates typically decrease. This encourages spending and investment, stimulating economic growth. Savings account yields also decrease, making saving less attractive.
What is the fed interest rate forecast for 2025?
The Fed's economic projections suggest gradual rate adjustments in 2025, depending on inflation and employment data. Market expectations fluctuate based on economic indicators. Check our FOMC schedule page for the latest meeting dates and rate decision history to track the Fed's policy direction.
How does the fed interest rate affect the stock market?
Interest rate changes significantly impact stocks. Rate cuts typically boost stock prices as borrowing becomes cheaper and bonds become less attractive. Rate hikes can pressure stocks by increasing borrowing costs and making bonds more competitive. The market often reacts more to Fed guidance about future rates than to the actual rate decision.
What is the FOMC and what does it do?
The Federal Open Market Committee (FOMC) is the policy-making body of the Federal Reserve responsible for setting interest rates. It consists of 12 members: 7 Federal Reserve Board governors and 5 regional Fed bank presidents. The FOMC meets 8 times yearly to assess economic conditions and adjust monetary policy.
How can I calculate my mortgage payment with current rates?
With current mortgage rates at 6.22% for a 30-year fixed loan, you can use our free Mortgage Calculator to estimate your monthly payment. Enter your loan amount, down payment, and interest rate to see your payment breakdown, total interest costs, and full amortization schedule.
Data sourced from Federal Reserve Board and Freddie Mac. Last updated: December 15, 2025