Interest RatesFOMC meetings (8 per year)

SPY & Federal Funds Rate

The interest rate at which banks lend reserve balances to other banks overnight.

SPY Price

$688.98

Federal Funds Rate

Last Data: Dec 2025

Last Release: Jan 22, 2026

Next Release: Jan 23, 2026

3.72%

Neutral

What It Measures

The federal funds rate is the interest rate banks charge each other for overnight loans of reserves. The Federal Reserve sets a target range for this rate and uses open market operations to keep the effective rate within the range. This rate serves as the primary tool of U.S. monetary policy and influences all other interest rates in the economy.

Why It Matters

**Monetary Policy Tool**: The Fed raises rates to fight inflation and lowers rates to stimulate growth. **Benchmark Rate**: Affects rates on mortgages, car loans, credit cards, savings accounts, and business loans. **Economic Signal**: Rate changes signal the Fed's view on economic conditions. **Market Driver**: FOMC decisions are among the most market-moving events.

Key Levels

0-0.25%

Zero lower bound, maximum accommodation

0.25-2.5%

Accommodative policy

2.5-4%

Neutral to slightly restrictive

Above 4%

Restrictive policy

Data Sources

SPY: S&P 500 ETF daily OHLCV data (1993-02-02 to 2026-01-22)

Fed Funds: FEDFUNDS - Federal Funds Rate from Federal Reserve

Units: Percent, Not Seasonally Adjusted, Monthly