Print
What are the historical changes in the target federal funds rate?
The Federal Reserve's objective in using the tools of monetary policy may be a desired quantity of reserves or a desired price of reserves--the federal funds rate. During the 1980s, the approach gradually changed from seeking a desired quantity of reserves toward attaining a specified level of the federal funds rate, a process that was largely complete by the end of the decade. In 1995, the FOMC began announcing its target level for the federal funds rate. Historical changes in the target federal funds rate are available on the Board of Governors' web site.
The Federal Reserve's objective in using the tools of monetary policy may be a desired quantity of reserves or a desired price of reserves--the federal funds rate. During the 1980s, the approach gradually changed from seeking a desired quantity of reserves toward attaining a specified level of the federal funds rate, a process that was largely complete by the end of the decade. In 1995, the FOMC began announcing its target level for the federal funds rate. Historical changes in the target federal funds rate are available on the Board of Governors' web site.
What is the discount rate?
The discount rate is the interest rate that an eligible depository institution is charged to borrow funds, typically for a short period, directly from a Federal Reserve Bank. By law, the board of directors, of each Reserve Bank sets the discount rate independently every fourteen days subject to the approval of the Board of Governors. Originally, each Reserve Bank set its discount rate to reflect the banking and credit conditions in its own District. Over the years, the transition from regional credit markets to a national credit market has gradually produced a national discount rate. As a result, the Federal Reserve maintains a uniform structure of discount rates across all Reserve Banks. For more information on the discount rate, see The Federal Reserve System: Purposes and Functions on the Board of Governors' web site.
The discount rate is the interest rate that an eligible depository institution is charged to borrow funds, typically for a short period, directly from a Federal Reserve Bank. By law, the board of directors, of each Reserve Bank sets the discount rate independently every fourteen days subject to the approval of the Board of Governors. Originally, each Reserve Bank set its discount rate to reflect the banking and credit conditions in its own District. Over the years, the transition from regional credit markets to a national credit market has gradually produced a national discount rate. As a result, the Federal Reserve maintains a uniform structure of discount rates across all Reserve Banks. For more information on the discount rate, see The Federal Reserve System: Purposes and Functions on the Board of Governors' web site.
Where can I find out what the current federal funds rate is?
The current target federal funds rate is available on the Board of Governors' web site.
The current target federal funds rate is available on the Board of Governors' web site.
The current actual federal funds
rate is available on the Federal Reserve Bank of New
York's web site.
Where can I find the latest interest rates?
You can find the current discount rates on the Federal Reserve Discount Window web site.
You can find the current discount rates on the Federal Reserve Discount Window web site.
You can find
other selected interest rates on the
Board of Governors of the Federal Reserve System's web
site.
Where can I find historical mortgage interest rates to check on my adjustable-rate mortgage?
Lenders use different bases, and sometimes more than one base, to determine the rate for adjustable-rate mortgages. Check your mortgage documentation to find out which base your lender uses to calculate your adjustable-rate mortgage then search for that base on the Internet. For example, Bankrate.com offers certain current and historical rates such as Leading Rates, rates for Treasury securities, and rates for other indexes. Another source for average rates on 30- and 15-year fixed rate mortgages and 1- and 5-year adjustable rate mortgages is Freddie Mac's Primary Mortgage Market Survey Archives.
Lenders use different bases, and sometimes more than one base, to determine the rate for adjustable-rate mortgages. Check your mortgage documentation to find out which base your lender uses to calculate your adjustable-rate mortgage then search for that base on the Internet. For example, Bankrate.com offers certain current and historical rates such as Leading Rates, rates for Treasury securities, and rates for other indexes. Another source for average rates on 30- and 15-year fixed rate mortgages and 1- and 5-year adjustable rate mortgages is Freddie Mac's Primary Mortgage Market Survey Archives.
Where can I get the Cost of Funds ratios used to calculate
my adjustable-rate mortgage interest rate?
The Office of Thrift Supervision's website has the National Average Cost of Funds Ratio as well as the Cost of Funds ratios by the Federal Home Loan Bank district and other Cost of Funds ratios.
The Office of Thrift Supervision's website has the National Average Cost of Funds Ratio as well as the Cost of Funds ratios by the Federal Home Loan Bank district and other Cost of Funds ratios.
Where can I get the current discount rate?
The Board of Governors' website explains the discount rate which is different for each of the three loan programs available to depository institutions through the discount window. The current discount window interest rates are on the Federal Reserve's discount window website.
The Board of Governors' website explains the discount rate which is different for each of the three loan programs available to depository institutions through the discount window. The current discount window interest rates are on the Federal Reserve's discount window website.
What is the prime rate?
The prime rate (sometimes also referred to as the "base" or "reference" rate) is a benchmark rate used by institutions for pricing business and other credit. Institutions adjust this rate from time to time in response to changes in market conditions. Institutions may set this rate internally or may adopt as their own a published rate (for example, the prevailing prime rate as reported in the financial press). Interest rates for most consumer loans are generally higher than the prime rate and are determined by the particular financial institution making the loan. A comprehensive explanation of various commercial and consumer interest rates, "Interest Rates: An Introduction," is available at Federal Reserve Bank of New York website. Prime interest rates going back to 1929 are available on the Research Department�s website of the Federal Reserve Bank of St. Louis located. Current and historical data on most interest rates are available at the Federal Reserve Board website.
The prime rate (sometimes also referred to as the "base" or "reference" rate) is a benchmark rate used by institutions for pricing business and other credit. Institutions adjust this rate from time to time in response to changes in market conditions. Institutions may set this rate internally or may adopt as their own a published rate (for example, the prevailing prime rate as reported in the financial press). Interest rates for most consumer loans are generally higher than the prime rate and are determined by the particular financial institution making the loan. A comprehensive explanation of various commercial and consumer interest rates, "Interest Rates: An Introduction," is available at Federal Reserve Bank of New York website. Prime interest rates going back to 1929 are available on the Research Department�s website of the Federal Reserve Bank of St. Louis located. Current and historical data on most interest rates are available at the Federal Reserve Board website.
Does the Federal Reserve control or set the prime rate?
No. Banks set their own rates based on the demand for various kinds of loans, on the cost of money to the banks, and on the administrative costs of making loans.
No. Banks set their own rates based on the demand for various kinds of loans, on the cost of money to the banks, and on the administrative costs of making loans.
