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Fed Funds

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In plain English

This is the overnight interest rate US banks actually pay each other — the Fed’s policy rate in the real world. The extra lines are the official target range.

When the band steps up, the Fed is hiking. When it steps down, cutting. It is the short end of the curve, not the 10-year and not QE.

Math and metrics

FRED DFF (effective), DFEDTARL / DFEDTARU (target band). Percent, daily. EFFR is a volume-weighted median of fed funds trades (NY Fed), not the midpoint of the band.

plot DFF, DFEDTARL, DFEDTARU. no transform.