If you've been paying attention to chatter about interest rates in recent years, you've probably come across the term "federal funds rate" – or just "fed funds rate" for short. But what exactly is the federal funds rate, and why does it matter?

The Fed cut rates again, easing borrowing but squeezing savers. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website.

The Federal Reserve concluded its last meeting of the year with a widely anticipated 25 basis point cut to the federal funds rate (FFR), bringing it to a range of 3.50-3.75%. Inflation has proven sticky over the past few years, never quite reaching that 2% ...

WASHINGTON ‒ With consumers focused on affordability heading into the holiday season, Federal Reserve Chair Jerome Powell said he hears Americans’ concerns over high costs “loud and clear.” Still, it was a divided Federal Open Market ...

Wednesday's decision to reduce the benchmark federal-funds rate by a quarter point—to between 3.5% and 3.75%, a three-year low—is aimed at protecting against a sharper-than-anticipated slowdown in hiring. With progress on inflation stalled, officials ...

Cantankerous and increasingly cautious consumers — perhaps put on edge by seemingly shrinking paychecks, a weaker job market and stubbornly high prices — gave the Federal Reserve more room to cut interest rates for a third time in 2025. On Wednesday ...