US Federal Funds Rate
Latest reading: 4.00 % (upper bound; range 3.75-4.00) for FOMC meeting, 15-16 Sep 2026 (+0.25 pp (hike)).
US Federal Funds Rate
The US Federal Reserve's policy rate range. It drives global dollar liquidity, US bond yields and foreign portfolio flows into emerging markets like India.
What it means
The US Federal Reserve's policy rate range. It drives global dollar liquidity, US bond yields and foreign portfolio flows into emerging markets like India.
Unanimous 12-0 vote to raise by 25 bps to 3.75-4.00%, first hike since 2023; projections point to possibly one more hike this year (CNBC). Next FOMC 27-28 Oct, decision 28 Oct (Fed calendar). Hike cited as a driver of September FPI selling from India.
Release details
- Category
- GLOBAL
- Frequency
- FOMC
- Previous
- 3.75
- Benchmark
- Fed inflation target: 2% (PCE)
- Released
- 2026-09-16
- Next release
- 2026-10-28
- Source
- Federal Reserve — FOMC Statement
Key questions about US Federal Funds Rate
How does the US Fed funds rate affect Indian markets?
Higher US policy rates make dollar assets more attractive, pulling foreign portfolio capital out of emerging markets like India, weakening the rupee and tightening domestic liquidity. That constrains how far the RBI can cut rates without risking capital outflows, which is why MPC statements routinely reference global monetary conditions.
How often does the US Federal Reserve set interest rates?
The Federal Open Market Committee (FOMC) holds eight scheduled meetings a year, roughly every six weeks. Four of those meetings are accompanied by the Summary of Economic Projections, including the 'dot plot' showing where individual policymakers expect rates to go.
What is the current US Federal Funds Rate?
US Federal Funds Rate stands at 4.00 % (upper bound; range 3.75-4.00) for FOMC meeting, 15-16 Sep 2026, against 3.75 % (upper bound; range 3.75-4.00) previously (+0.25 pp (hike)). The US Federal Reserve's policy rate range. It drives global dollar liquidity, US bond yields and foreign portfolio flows into emerging markets like India.
Who publishes the US Federal Funds Rate data?
US Federal Funds Rate is published by Federal Reserve — FOMC Statement on a fomc basis. Release window: After each FOMC meeting (8 per year, ~11:30 PM IST). The next update is expected on 2026-10-28.
What is a healthy level for US Federal Funds Rate?
The reference benchmark used on MacroNest is: Fed inflation target: 2% (PCE). The latest reading of 4.00 % (upper bound; range 3.75-4.00) is currently assessed as "Tightening resumed, one more hike signalled".
Why does US Federal Funds Rate matter?
Global benchmarks set the external backdrop for Indian policy, capital flows and the rupee. The US Federal Reserve's policy rate range. It drives global dollar liquidity, US bond yields and foreign portfolio flows into emerging markets like India.