The federal funds market consists of domestic unsecured borrowings in U.S. dollars by depository institutions from other depository institutions and certain other entities, primarily government-sponsored enterprises.
The effective federal funds rate (EFFR) is calculated as a volume-weighted median of overnight federal funds transactions reported in the FR 2420 Report of Selected Money Market Rates. The New York Fed publishes the EFFR for the prior business day on the New York Fed’s website at approximately 9:00 a.m.
For more information on the EFFR’s publication schedule and methodology, see Additional Information about Reference Rates Administered by the New York Fed.
The Federal Open Market Committee establishes the target rate, or range, for trading in the federal funds market.