Federal Funds Rate Holds at 3.64% Through Q1 2026
The effective federal funds rate has remained at 3.64% for three consecutive months, following a steady cutting cycle that brought rates down from 4.09% in October 2025.
The Federal Reserve's effective federal funds rate held steady at 3.64% in March 2026, unchanged from January and February, marking a pause after six months of gradual rate cuts.
Federal Funds Rate Trajectory
| Month | Effective Rate |
|---|---|
| March 2026 | 3.64% |
| February 2026 | 3.64% |
| January 2026 | 3.64% |
| December 2025 | 3.72% |
| November 2025 | 3.88% |
| October 2025 | 4.09% |
The data shows the Fed cut rates by approximately 45 basis points between October and December 2025 before pausing. The effective rate has been flat at 3.64% through the first quarter of 2026.
The pause suggests the FOMC sees the current policy stance as appropriately positioned for the economic conditions, with inflation moderating and the labor market stable at 4.3% unemployment.
Source: Board of Governors of the Federal Reserve System via FRED, Federal Reserve Bank of St. Louis.