U.S. Interest Rates
Latest data: September 16, 2026 · Updated automatically from official sources
Interest rates are the price of money, and they ripple through every corner of the economy — from credit-card APRs and mortgage payments to corporate borrowing costs and stock valuations. The Federal Reserve sets the short end of the curve through the federal funds rate; markets set the long end through Treasury yields, which reflect expectations for future Fed policy, inflation and growth.
Latest readings
- Fed Funds Rate was 3.63% as of August 2026, unchanged from the prior reading, versus 4.33% a year earlier — the lowest since October 2022.
- 2-Yr Treasury was 4.74% as of Sep 16, 2026, up 0.07 percentage points from the prior reading, versus 3.51% a year earlier — the highest since July 2024.
- 10-Yr Treasury was 5.01% as of Sep 16, 2026, up 0.01 percentage points from the prior reading, versus 4.04% a year earlier — the highest since July 2007.
- 10Y–2Y Spread was 0.27 pp as of Sep 17, 2026, unchanged from the prior reading, versus 0.54 pp a year earlier — the lowest since March 2025.
- 30-Yr Mortgage was 6.95% as of Sep 17, 2026, up 0.19 percentage points from the prior reading, versus 6.35% a year earlier — the highest since January 2025.
Fed funds rate vs. 10-year Treasury
Treasury yields: 2-year vs. 10-year
Federal funds rate since 1954
Recent readings
| Period | Fed funds (effective) | Change | 10-yr Treasury (month-end) |
|---|---|---|---|
| August 2026 | 3.63% | 0.00 pp | 4.75% |
| July 2026 | 3.63% | 0.00 pp | 4.75% |
| June 2026 | 3.63% | 0.00 pp | 4.44% |
| May 2026 | 3.63% | -0.01 pp | 4.45% |
| April 2026 | 3.64% | 0.00 pp | 4.40% |
| March 2026 | 3.64% | 0.00 pp | 4.30% |
| February 2026 | 3.64% | 0.00 pp | 3.97% |
| January 2026 | 3.64% | -0.08 pp | 4.26% |
| December 2025 | 3.72% | -0.16 pp | 4.18% |
| November 2025 | 3.88% | -0.21 pp | 4.02% |
| October 2025 | 4.09% | -0.13 pp | 4.11% |
| September 2025 | 4.22% | -0.11 pp | 4.16% |
| August 2025 | 4.33% | — | 4.23% |
Key statistics
| Indicator | Latest | Year ago | 5-yr avg | Long-run avg | Record high | Record low | Data since |
|---|---|---|---|---|---|---|---|
| Fed Funds Rate (eff.) | 3.63% | 4.33% | 3.64% | 4.59% | 19.10% (Jun 1981) | 0.05% (Apr 2020) | 1954 |
| 2-Yr Treasury | 4.74% | 3.51% | 3.74% | 4.95% | 16.95% (Sep 1981) | 0.09% (Feb 2021) | 1976 |
| 10-Yr Treasury | 5.01% | 4.04% | 3.80% | 5.80% | 15.84% (Sep 1981) | 0.52% (Aug 2020) | 1962 |
| 10Y–2Y Spread | 0.27 pp | 0.54 pp | 0.06 pp | 0.84 pp | 2.91 pp (Feb 2011) | -2.41 pp (Mar 1980) | 1976 |
| 30-Yr Mortgage | 6.95% | 6.35% | 6.18% | 7.68% | 18.63% (Oct 1981) | 2.65% (Jan 2021) | 1971 |
How the Fed sets interest rates
The Federal Open Market Committee (FOMC) meets eight times a year and sets a target range for the federal funds rate — the rate banks charge each other for overnight loans of reserves. The Fed keeps the actual (“effective”) rate inside that range mainly by setting the interest rate it pays on reserve balances. Changes in the fed funds rate pass quickly to the prime rate, credit-card rates and adjustable-rate loans.
The Fed raises rates to cool demand when inflation is above its 2% goal and cuts them to support growth and employment when the economy weakens. The full-history chart shows how dramatically that policy has varied, from near zero after 2008 and in 2020 to double digits in the early 1980s.
Short-term vs. long-term rates
The 2-year Treasury yield moves closely with expectations for the fed funds rate over the next couple of years. The 10-year yield also reflects expected inflation, long-run growth and a “term premium” investors demand for tying up money longer. The 10-year is the benchmark for mortgage rates and many corporate loans. The difference between the two — the yield curve — is covered in detail on the yield curve page.
Frequently asked questions
What is the federal funds rate right now?
The effective federal funds rate shown at the top of this page is the monthly average published by the Federal Reserve. The FOMC’s target range is announced after each of its eight scheduled meetings per year.
Why don’t long-term rates always follow the Fed?
The Fed directly controls only overnight rates. Long-term yields depend on investors’ expectations for future policy, inflation and growth, as well as global demand for Treasuries, so they can move in a different direction from the policy rate.
Related data
Data are retrieved automatically from the original statistical agencies (via the Federal Reserve Bank of St. Louis FRED database) and may be revised by the source. Year-over-year changes are calculated by econHQ. See About & methodology for details.