Source: https://mochatrade.com/learn/glossary/fed-funds-rate

# Fed funds rate
URL: https://mochatrade.com/learn/glossary/fed-funds-rate
Last modified: 2026-10-17

The fed funds rate is the target range for overnight lending between US banks, the one rate the Fed sets directly. It anchors [the short end of the yield curve](https://mochatrade.com/learn/us-market-structure/how-the-fed-moves-markets) while the market sets the long end, and [the odds of its next move](https://mochatrade.com/learn/start-here/how-to-read-us-market-news) are a live price before every meeting.

## Related terms

- Yield curve: https://mochatrade.com/learn/glossary/yield-curve
- CME FedWatch: https://mochatrade.com/learn/glossary/cme-fedwatch
- 2-year Treasury yield: https://mochatrade.com/learn/glossary/2-year-treasury-yield
- Dot plot: https://mochatrade.com/learn/glossary/dot-plot
- FOMC: https://mochatrade.com/learn/glossary/fomc
- Market correction: https://mochatrade.com/learn/glossary/market-correction