What is the Daily effective federal funds rate (EFFR)?

1. As of March 1, 2016, the daily effective federal funds rate (EFFR) is a volume-weighted median of transaction-level data collected from depository institutions in the Report of Selected Money Market Rates (FR 2420). Prior to March 1, 2016, the EFFR was a volume-weighted mean of rates on brokered trades. 2.

What is the effective federal funds rate?

View and export this data back to 1954. Upgrade now. Effective Federal Funds Rate is at 5.33%, compared to 5.33% the previous market day and 5.08% last year. This is higher than the long term average of 4.61%. The Effective Federal Funds Rate is the rate set by the FOMC (Federal Open Market Committee) for banks to borrow funds from each other.

What is a federal funds rate?

The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. When a depository institution has surplus balances in its reserve account, it lends to other banks in need of larger balances.