How to read the Fed funds target range lower bound

The Fed explains the underlying concept this way: “The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.” The lower bound of its target range stands at 3.75% after the decision of September 16, 2026.

Who publishes it, when

The Board of Governors of the Federal Reserve System publishes each rate decision through its Federal Open Market Committee, known as the FOMC, on its website. The latest announcement came on Wednesday, Sept. 16, 2026, 2:00 p.m. ET (18:00 GMT), when the committee set the lower bound at 3.75% in a preliminary reading. Each decision appears as a press release, so you can check the exact level directly at the source.

The next decision is scheduled for Wednesday, Oct. 28, 2026, and you can follow it on the economic calendar alongside other US releases. Between meetings the lower bound stays where the last decision put it, so the figure changes only on decision days. Treat each announcement day as the single moment when this figure can change.

How to read it

In June 17, 2026 the lower bound stood at 3.5%, the earliest of the three readings you see here, and it is a preliminary level. The FOMC rate decision page lists every announcement in sequence for you. The figure is a level, not a change, so you compare each decision with the one before it.

On July 29, 2026 the lower bound holds at 3.5%, unchanged from 3.5% on June 17, 2026. The direction against June is flat, so the committee left the lower bound where it was. A hold like this is still a decision, and the Fed announces it at the same time as any change.

On September 16, 2026 the lower bound rises to 3.75%, a small move up from 3.5% in July. This is a level, not a month on month or year over year change. Its status is preliminary, and the prop firm news rules explain how many firms treat announcement days.

What moves markets

The Fed describes its method in its own words. “Using the three tools, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate.” If the committee lifts the lower bound, short-term borrowing costs could rise across the banking system, while a lower bound that stays put could leave those costs little changed.

Currencies could respond when the lower bound changes, since higher US rates may draw demand toward the dollar. Indices and gold may also be exposed, because borrowing costs and the return on cash feed into how investors value stocks and metals. The dates that test the topic are announcement days such as Wednesday, Oct. 28, 2026.

Common reading mistakes

• Mistake: reading the lower bound as the whole target range. Correct reading: it is only the floor of the band, currently 3.75%, and the range also has a separate upper bound.
• Mistake: treating a hold as a cut. Correct reading: the lower bound held at 3.5% in July 29, 2026 and at 3.5% in June 17, 2026, so nothing changed at those two decisions.
• Mistake: assuming the target equals the rate banks actually pay. Correct reading: the target steers an overnight lending rate between depository institutions, which is a separate figure from the target itself.
• Mistake: calling a preliminary level final. Correct reading: each decision shown here carries preliminary status, so check the Federal Reserve press release for the exact wording of the announcement.

What is the Fed funds target range lower bound?

It is the floor of the band the Federal Reserve sets for the overnight federal funds rate. It stands at 3.75% after the decision of September 16, 2026. The range also has an upper bound.

When does the Fed announce its next rate decision?

The next decision falls on Wednesday, Oct. 28, 2026. The Fed announced its latest decision on Wednesday, Sept. 16, 2026, 2:00 p.m. ET (18:00 GMT).

Did the Fed change the lower bound in September?

Yes. The lower bound rose to 3.75% in September from 3.5% in July, a small move up. It held at 3.5% in June.