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Fed Rates

Definition

Fed rates, or Federal Reserve rates, refer to the target interest rates set by the U.S. central bank to influence the cost of borrowing money throughout the economy. These rates, primarily the federal funds rate, serve as a key monetary policy tool affecting inflation, economic growth, and asset valuations. Changes in Fed rates have significant ripple effects across global financial markets, including traditional assets and increasingly, digital assets. Policymakers adjust these rates based on macroeconomic conditions and their outlook for the economy.