Finder makes money from featured partners, but editorial opinions are our own.
Advertiser disclosure
Federal Funds Rate History: 1954 to January 2026
The Fed's First Meeting of 2026 Delivers First Hold Since July 2025
The Fed held rates at its first meeting of 2026 meeting on Wednesday, January 28, 2026 at a target range of 3.5-3.75%. This follows a cut at the December meeting.
Latest federal funds rate data at a glance
- Current Fed rate: The Fed maintained rates at a range of 3.5-3.75% following the Wednesday, January 28, 2026 meeting(1)
- Effective federal funds rate: 3.89% as of Wednesday, January 28, 2026(4)
- Previous meeting: The Fed cut rates to 3.75% to 4% on Wednesday, December 9, 2026(1)
- Rate this time last year: Cut rates at a range of 4.25-4.5% at its January meeting in 2025(1)
- Next meeting: Wednesday, March 18, 2026(2)
- Highest rate since 1954: 19.1% monthly average recorded June 1981(3)
- Lowest rate since 1954: 0.05% monthly average recorded April 2020(3)
Changes to the federal funds rate in the last 12 months
The Fed finally cut rates in September 2024, a trend that continued at the November and December meetings, bringing the target range from 4.5%–4.75% to 4.25%–4.5% following the eighth and final Federal Open Market Committee (FOMC) meeting of 2024.
Over the last 24 months or so, we’ve seen a lot of movement in the Fed rate, with the Fed raising rates four times in 2023, starting with consecutive rate increases of 25 basis points in February, March and May 2023. Rates were then held in June and increased by a further 25 basis point hike in July. Since then, there was a string of holds until the final three meetings of 2024 and then pauses in rate cuts at the January, March, May, June and July 2025 meetings. The Fed has now cut rates in back-to-back-to-back meetings in Septermber, October and December 2025
The Fed raised rates seven times in 2022, which is the highest number of Fed rate hikes in a single year since 2005. While 2005 saw more Fed rate hikes in total (8), individual increases were just 25 basis points, whereas the changes in 2022 have ranged from 25 to 75 basis points.
7 years of changes to the federal funds rate
Since 2018, the average federal funds rate has been 2.83%, which is about half of where we’re at today. However, during this period, the US saw historically low rates, in part due to Covid. Rates hit a record low of 0.05% for the months of April and May 2020.
The history of federal funds rate changes
It’s not a great sign that the Fed rate is up compared to its average over the last decade or so. However, with the the effective federal funds rate sitting at 3.89% that is actually lower than the average rate since 1954 (4.6%).
2025 FOMC meeting calendar
Eight meetings of the Federal Open Market Committee are scheduled for 2026, with the second meeting of the year to be held on March 17-18, 2026.
Sources
Ask a question