U.S. Interest Rates Today
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U.S. Interest Rates Guide
Federal Funds Rate, Prime Rate, Treasury Yields & More
Key Takeaways
- Federal funds rate: 3.50%–3.75% target range, held steady at the March 2026 FOMC meeting
- Prime rate: 6.75% (= fed funds upper bound 3.75% + 3.00%), effective since December 11, 2025
- Treasury yields: 10-year at 4.33%, 30-year at 4.89%, 2-year at 3.84% (as of April 1, 2026)
- SOFR: 3.64%, the overnight benchmark that replaced LIBOR for adjustable-rate loans
- Discount rate: 3.75%, what banks pay for emergency overnight borrowing from the Federal Reserve
- Outlook: Markets price ~86% odds of a hold at the April FOMC meeting; the first likely cut is June (~40%)
On This Page
Federal Reserve Policy Rates
The Federal Reserve sets three benchmark rates that cascade through the entire U.S. financial system. Every consumer loan, savings account, and bond yield traces back to these policy decisions. The Federal Open Market Committee meets eight times per year to review economic data and determine whether to raise, lower, or hold these rates steady.
| Rate | Current | Effective Date | What It Does |
|---|---|---|---|
| Fed Funds Target (Upper) | 3.75% | Dec 11, 2025 | Top of the range banks charge each other overnight |
| Fed Funds Target (Lower) | 3.50% | Dec 11, 2025 | Bottom of the range; floor for overnight lending |
| Effective Federal Funds Rate | 3.64% | April 1, 2026 | Actual volume-weighted average of overnight trades |
| Discount Rate (Primary Credit) | 3.75% | Dec 11, 2025 | Emergency borrowing rate from the Fed’s discount window |
| Bank Prime Loan Rate | 6.75% | Dec 11, 2025 | Base rate for consumer loans = fed funds upper + 3.00% |
The relationship between these rates is mechanical: the prime rate always equals the federal funds target upper bound plus 3.00 percentage points. This spread has held since 1994. When the FOMC cuts or raises the fed funds rate, banks adjust prime by the same amount within one business day. The discount rate typically equals the fed funds target upper bound and serves as a penalty rate for banks that need emergency liquidity. For a deeper explanation of these relationships, see our guide to prime rate vs other rates.
Treasury Yields Across the Curve
Treasury securities are the backbone of the U.S. bond market. Their yields serve as benchmarks for mortgage rates, corporate bonds, and savings products. The Treasury yield curve shows what the government pays to borrow for different time periods, from 4 weeks to 30 years. All data below comes from the Federal Reserve’s H.15 Statistical Release.
| Maturity | Yield | 1 Week Ago | Change | What It Benchmarks |
|---|---|---|---|---|
| 1-Month T-Bill | 3.73% | 3.73% | — | Money market funds |
| 3-Month T-Bill | 3.73% | 3.74% | ↓ 0.01% | Short-term CD rates |
| 6-Month T-Bill | 3.76% | 3.77% | ↓ 0.01% | 6-month CD rates |
| 1-Year Treasury | 3.77% | 3.76% | ↑ 0.01% | 1-year CD and savings rates |
| 2-Year Treasury | 3.84% | 3.83% | ↑ 0.01% | Auto loans, personal loans |
| 5-Year Treasury | 3.88% | 3.95% | ↑ 0.01% | 5/1 ARM rates, 5-year CDs |
| 7-Year Treasury | 4.15% | 4.15% | — | Corporate bond yields |
| 10-Year Treasury | 4.44% | 4.34% | ↓ 0.01% | 30-year fixed mortgage rates |
| 20-Year Treasury | 4.90% | 4.98% | ↓ 0.03% | Long-term corporate bonds |
| 30-Year Treasury | 4.89% | 4.91% | ↓ 0.02% | Long-term fixed-rate mortgages |
The yield curve shape tells you a lot about where the market expects the economy to go. Right now, short-term yields (3.73%–3.77%) are lower than long-term yields (4.33%–4.89%), meaning the curve has a normal upward slope. This is a healthy signal: investors demand higher compensation for locking money up longer. Compare this with mid-2023 when the curve was deeply inverted (short-term rates exceeded long-term rates), which historically signals recession. For consumers, the 10-year Treasury is the single most important rate to watch because it directly influences mortgage rates.
💡 Pro Tip:
Treasury yields and the prime rate move for different reasons. The prime rate is mechanically tied to the Fed’s target rate and only changes when the FOMC acts. Treasury yields trade freely in the bond market every day, responding to inflation expectations, economic data, and global demand for safe assets. That is why the 10-year yield can rise even when the Fed is cutting rates—exactly what happened through late 2024 and early 2025.
Overnight and Short-Term Rates
Overnight rates determine the cost of short-term money in the financial system. They directly affect high-yield savings account APYs, money market fund yields, and the variable rates on credit cards and HELOCs. The two most important benchmarks are the Secured Overnight Financing Rate (SOFR), which replaced LIBOR in 2023, and the effective federal funds rate.
| Rate | Current | Description |
|---|---|---|
| SOFR | 3.64% | Secured overnight rate; benchmark for ARMs and business loans since LIBOR sunset |
| Effective Fed Funds | 3.64% | Actual rate banks charge each other for unsecured overnight loans |
| 1-Month Commercial Paper | 3.70% | Short-term corporate borrowing rate |
| 3-Month Commercial Paper | 3.65% | Quarterly corporate funding cost |
| 4-Week T-Bill | 3.63% | Ultra-short government security; closest proxy for cash rates |
| 3-Month T-Bill | 3.63% | Most traded short-term government security |
SOFR deserves special attention because it replaced LIBOR as the standard benchmark for adjustable-rate mortgages, student loans, and business credit lines. SOFR is calculated daily by the New York Federal Reserve based on overnight Treasury repurchase transactions. At 3.64%, SOFR currently trades very close to the effective federal funds rate, which is typical when credit markets are functioning normally. If you have an ARM or variable-rate business loan originated after mid-2023, your rate likely resets based on SOFR rather than the old LIBOR benchmark.
How These Rates Affect Consumer Products
Each interest rate on this page connects to specific financial products you use every day. The prime rate is the most direct link between Fed policy and your wallet, but Treasury yields matter too because they set the pricing for fixed-rate products like mortgages and auto loans. Here is how the current rate environment translates into the rates you actually pay or earn.
| Product | Typical Rate | Benchmark | How It’s Set |
|---|---|---|---|
| Credit Cards | 18.75%–29.75% | Prime (6.75%) | Prime + 12%–23% fixed margin |
| HELOCs | 7.25%–8.75% | Prime (6.75%) | Prime + 0.5%–2.0% margin |
| SBA 7(a) Loans | 9.00%–11.50% | Prime (6.75%) | Prime + 2.25%–4.75% per SBA caps |
| 30-Year Fixed Mortgage | 6.34%–6.50% | 10-Yr Treasury (4.33%) | 10-year yield + 1.7%–2.2% spread |
| 15-Year Fixed Mortgage | 5.50%–5.80% | 5-Yr Treasury (4.06%) | 5-year yield + 1.5%–1.8% spread |
| High-Yield Savings | 4.00%–5.00% APY | Fed Funds (3.50%–3.75%) | Online banks pay above fed funds to attract deposits |
| 1-Year CD | 4.00%–4.10% APY | 1-Yr Treasury (3.77%) | Tracks 1-year T-bill with 20–35 bps premium |
| Personal Loans | 8.5%–36% | 2-Yr Treasury (3.84%) | Fixed rate set at origination; credit score drives spread |
💡 Pro Tip:
Variable-rate products (credit cards, HELOCs, SBA loans) are directly tied to the prime rate and adjust automatically when the Fed moves. Fixed-rate products (mortgages, personal loans, CDs) are priced off Treasury yields and lock in when you originate. If you think rates are heading lower, a variable-rate product lets you benefit from future cuts. If you want certainty, lock a fixed rate now. Use our Variable vs Fixed Rate Calculator to model both scenarios.
Historical Rate Comparison
Putting today’s rates in historical context helps you decide whether to act now or wait. The table below compares current rates against key inflection points from the recent rate cycle, using data from FRED and the U.S. Treasury.
U.S. Prime Rate: 2000–2026
Source: Federal Reserve H.15 Release. Gray bands indicate U.S. recessions (NBER).
| Rate | Pre-COVID (Jan 2020) | COVID Low (Apr 2020) | Peak (Jul 2023) | Today (Mar 2026) |
|---|---|---|---|---|
| Fed Funds (Upper) | 1.75% | 0.25% | 5.50% | 3.75% |
| Prime Rate | 4.75% | 3.25% | 8.50% | 6.75% |
| 10-Year Treasury | 1.88% | 0.62% | 3.88% | 4.44% |
| 30-Year Treasury | 2.33% | 1.27% | 4.03% | 4.89% |
| 30-Yr Mortgage | 3.72% | 3.23% | 6.81% | 6.37% |
The pattern is clear: despite five rate cuts totaling 1.75% since September 2024, rates remain well above pre-pandemic levels. The fed funds rate at 3.50%–3.75% is double the pre-COVID level. Long-term Treasury yields are significantly higher than they were even at the peak of the 2023 hiking cycle, reflecting persistent inflation expectations and larger government deficits. For borrowers, this means today’s rates are favorable compared to the 2023 peak but still elevated by historical standards. For savers, yields on risk-free instruments remain the best in over 15 years.
What Are Current U.S. Interest Rates?
As of April 1, 2026, the key U.S. interest rates are: the federal funds rate target at 3.50%–3.75%, the prime rate at 6.75%, the 10-year Treasury yield at 4.33%, and the 30-year fixed mortgage rate averaging 6.37%. These rates reflect the Federal Reserve’s decision to hold its benchmark rate steady since January 2026 after five cuts totaling 1.75 percentage points between September 2024 and December 2025. The effective federal funds rate — the actual overnight rate banks charge each other — is 3.64%, and SOFR (the replacement for LIBOR) tracks closely at 3.64%.
For consumers, the most directly relevant rates are: the prime rate (drives credit cards, HELOCs, and SBA loans), the 10-year Treasury yield (drives fixed mortgage rates), and high-yield savings/CD rates (currently 4.20%–4.55% APY at the best online banks). All of these rates are interconnected — the Fed’s policy rate sets the floor, Treasury yields set the benchmark for fixed-rate products, and bank competition determines deposit rates. See the policy rates table and consumer product impact section above for the full breakdown.
Where Are U.S. Interest Rates Headed in 2026?
The FOMC’s March 2026 dot plot projects one more 25-basis-point rate cut this year, which would bring the fed funds rate to 3.25%–3.50% and the prime rate to 6.50%. Futures markets are slightly more aggressive, pricing in up to two cuts — most likely at the June and September FOMC meetings. The Fed’s next meeting on May 6–7 is expected to be a hold, with the CME FedWatch Tool showing roughly 85% probability of no change.
The key variable is inflation. Core PCE remains at roughly 2.6%–2.8%, above the Fed’s 2% target, and geopolitical risks (particularly Middle East tensions affecting energy prices) add uncertainty. If inflation drops below 2.5% by mid-year, two cuts become likely and borrowers can expect lower variable rates by Q3. If inflation stays sticky, the Fed may deliver only one cut or hold for the remainder of 2026. For the Treasury yield curve, the market consensus points to the 10-year settling between 4.0%–4.4% — meaning fixed mortgage rates are unlikely to drop below 6.0% this year. Savers should expect high-yield savings and CD rates to drift 25–50 basis points lower by year-end as the Fed eases.
Frequently Asked Questions
What is the federal funds rate today?
The federal funds target range is 3.50%–3.75% as of March 2026. The effective federal funds rate (the actual rate banks traded at) was 3.64% on April 1, 2026. This rate was set at the December 10, 2025 FOMC meeting and has been held steady since. The Fed sets this rate to influence borrowing costs throughout the economy.
How does the federal funds rate affect the prime rate?
The prime rate equals the federal funds target upper bound plus 3.00 percentage points. With the upper bound at 3.75%, the prime rate is 6.75%. This relationship has held since 1994. When the FOMC raises or lowers the fed funds rate, banks adjust the prime rate by the same amount within one business day. Products tied to prime (credit cards, HELOCs, SBA loans) then adjust automatically.
Why are Treasury yields important for consumers?
Treasury yields set the benchmark for fixed-rate borrowing. The 10-year Treasury yield (4.33%) is the primary driver of 30-year fixed mortgage rates, which typically run 1.7%–2.2% above the 10-year. Shorter-term Treasury yields influence CD rates, auto loan rates, and personal loan pricing. When Treasury yields rise, fixed-rate borrowing gets more expensive even if the Fed has not raised its policy rate.
What is SOFR and why does it matter?
SOFR (Secured Overnight Financing Rate) is the benchmark that replaced LIBOR in June 2023. Currently at 3.64%, SOFR is calculated daily by the New York Federal Reserve based on $1+ trillion in daily Treasury repo transactions. If you have an adjustable-rate mortgage, student loan, or business credit line originated after mid-2023, your rate likely resets based on SOFR plus a fixed margin.
Where can I find official U.S. interest rate data?
The most authoritative source is the Federal Reserve’s H.15 Statistical Release, updated daily with rates for the federal funds, prime, discount window, Treasuries, and commercial paper. The U.S. Treasury yield curve data provides constant maturity rates. FRED (Federal Reserve Economic Data) from the St. Louis Fed offers historical data and charts for every rate on this page.
When will U.S. interest rates change next?
The next FOMC meeting is May 6–7, 2026. The CME FedWatch tool shows roughly 85% probability of a hold at that meeting. The first meeting where a rate cut is meaningfully priced in is June 16–17, 2026 (~55% probability). The Fed’s updated dot plot from March 2026 projects one 25-basis-point cut this year, though actual decisions depend on incoming inflation and employment data. See our FOMC meeting schedule page for real-time probability updates.
Related Resources
- Current Prime Rate Today — Daily prime rate updates and analysis
- Federal Reserve Meeting Schedule — FOMC dates and rate decision probabilities
- Prime Rate vs APR vs Interest Rate vs Federal Funds Rate
- Current Mortgage Rates Today — Daily mortgage rate updates
- Best High-Yield Savings Accounts — Top savings rates
- Best CD Rates Today — Top certificate of deposit rates
- Prime Rate Forecast 2026 — Where rates are headed
- Prime Rate History Since 1980
References
- Federal Reserve — H.15 Selected Interest Rates (Daily)
- Federal Reserve — FOMC Statements and Minutes
- Federal Reserve — FOMC Meeting Calendar
- U.S. Treasury — Daily Treasury Yield Curve Rates
- FRED — Bank Prime Loan Rate Historical Data
- FRED — Federal Funds Effective Rate
- New York Fed — Secured Overnight Financing Rate (SOFR)
- CME Group — FedWatch Tool
- Bureau of Labor Statistics — Employment Situation
- FDIC — Quarterly Banking Profile