- Articles -2016 - Fed Funds Interest Rates vs. S&P500 Index 
Kirk Lindstrom on Cover of Timer Digest
Fed Funds Rate vs. S&P500 Index Prices
Federal Reserve Fed Funds Interest Rates vs Stock Prices
Get monthly updates on interest rates as well as stocks in
Kirk Lindstrom's Investment Letter

Free Sample, More Information & Performance

Return to home page and Charts page

February 28, 2016:  In the United States, the federal funds rate1 is the interest rate at which depository institutions actively trade balances held at the Federal Reserve, called federal funds, with each other, usually overnight, on an uncollateralized basis. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets.

The current target rate for the Fed Funds Interest Rate2:  On December 17, 2015 the Federal Reserve Open Market Committee increased the Federal Funds Target Rate by 0.25% to a rage of 0.25% to 0.50%. 
Graph of Fed Funds Rate vs. S&P500 Index Prices
Graph of Fed Funds Rate vs. S&P500 Index Prices

Best Savings Account Rate Survey
Note 1.  Source: private data in Excel

The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule.

Note 2.  Open Market Operations - History of Fed Funds Rate Changes

30-Year Conventional Mortgage Rates30-Year FHA Mortgage Rates
30-Year Conventional Mortgage Rate Historical Chart30-Year FHA Mortgage Rate Historical Chart

Click for FREE sample of Kirk Lindstrom's                    Investment Letter
The Retirement Advisor Return to home page


Disclaimer:  The information contained in this web site is not intended to constitute financial advice, and is not a recommendation or solicitation to buy, sell or hold any security. This blog is strictly informational and educational and is not to be construed as any kind of financial advice, investment advice or legal advice. Copyright © 2016 Kirk Lindstrom. Note: "CORE & Explore®" was coined by and is a registered trademark of Charles Schwab & Co., Inc.