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Federal Reserve and Money Supply

The Fed's target range for the federal funds rate is 3.75% to 4.00%, down 0.25 points in a year. M2 money supply is $23.34T.

Fed target range
3.75% to 4.00%
Since 09/17/2026
M2 money supply
$23.34T
+5.7% in a year · Aug 2026
Fed balance sheet
$6.75T
+$157B in a year · 10/21/2026
Cash in circulation
$2.42T
Paper money and coins · Oct 2025

The Fed's interest rate since 2000

Effective federal funds rate, monthly average, and the top of the Fed's target range (set since December 2008), in percent

Effective federal funds rateTop of the Fed's target range
Show as a table
PeriodEffective federal funds rate
Sep 20263.75%
Dec 20253.72%
Dec 20244.48%
Dec 20235.33%
Dec 20224.10%
Dec 20210.08%
Dec 20200.09%
Dec 20191.55%
Dec 20182.27%
Dec 20171.30%
Dec 20160.54%
Dec 20150.24%
Dec 20140.12%
Dec 20130.09%
Dec 20120.16%

Source: Federal Reserve via FRED

Key rates today

Rates set or reported by the Federal Reserve and the New York Fed

Swipe the table sideways to see more columns.

RateLatestAs of
Federal funds target range3.75% to 4.00%10/26/2026
Effective federal funds rate (monthly)3.75%Sep 2026
Interest on reserve balances3.90%10/26/2026
SOFR (overnight secured rate)3.92%10/23/2026
Target range a year earlier4.00% to 4.25%10/26/2025

Money supply since 2000

M1 and M2, seasonally adjusted, in trillions of dollars. M1 jumped in May 2020 when savings deposits were moved into it.

M2M1
Show as a table
PeriodM2
Aug 2026$23.34T
Dec 2025$22.36T
Dec 2024$21.49T
Dec 2023$20.78T
Dec 2022$21.29T
Dec 2021$21.50T
Dec 2020$19.12T
Dec 2019$15.35T
Dec 2018$14.39T
Dec 2017$13.89T
Dec 2016$13.24T
Dec 2015$12.39T
Dec 2014$11.72T
Dec 2013$11.06T
Dec 2012$10.49T

M1 (cash, checking and savings deposits) is $19.99T. M2 adds small time deposits and retail money market funds, for a total of $23.34T.

M2 money supply by year

December of each year (latest month for this year) and the change from the same month a year earlier

YearM21-year change
2026 (Aug 2026)$23.34T+5.7%
2025$22.36T+4.0%
2024$21.49T+3.4%
2023$20.78T-2.4%
2022$21.29T-1.0%
2021$21.5T+12.5%
2020$19.12T+24.5%
2019$15.35T+6.7%
2018$14.39T+3.6%
2017$13.89T+4.9%
2016$13.24T+6.8%
2015$12.39T+5.7%

The Fed's balance sheet

Total assets of the Federal Reserve, mostly Treasury bonds and mortgage-backed securities, in trillions of dollars

Show as a table
PeriodFed total assets
Oct 2026$6.75T
Dec 2025$6.64T
Dec 2024$6.89T
Dec 2023$7.71T
Dec 2022$8.55T
Dec 2021$8.76T
Dec 2020$7.36T
Dec 2019$4.17T
Dec 2018$4.08T
Dec 2017$4.45T
Dec 2016$4.45T
Dec 2015$4.49T
Dec 2014$4.50T
Dec 2013$4.03T
Dec 2012$2.91T

The Fed buys bonds to push long-term rates down (quantitative easing) and lets them run off to do the opposite (quantitative tightening). Banks hold $9.02T in reserves at the Fed. Money funds and others park $200M overnight at the Fed through reverse repurchase agreements.

Core PCE inflation
3.0%
The Fed's 2% target measure · Aug 2026
CPI inflation
3.7%
All items, 12 months
Expected inflation, 10 years
2.34%
From Treasury bond prices · 10/23/2026
Dollar index (broad)
121.4
+0.6% in a year

Frequently asked questions

What is the Fed's interest rate right now?
The Federal Open Market Committee's target range for the federal funds rate is 3.75% to 4.00%. The effective rate, what banks actually charged each other overnight, averaged 3.75% in Sep 2026. The Fed meets eight times a year to set it.
How much money is there in the U.S.?
The M2 money supply, which counts cash, checking and savings deposits, small time deposits and retail money market funds, was $23.34T in Aug 2026. Of that, $2.42T is paper money and coins in circulation, much of it held outside the U.S.
Does the Fed print money?
The Treasury's Bureau of Engraving and Printing prints paper money and the U.S. Mint makes coins, and the Fed puts them into circulation as banks ask for cash. Most new money is created electronically: when the Fed buys bonds it credits banks' reserve accounts, and when banks make loans they create new deposits.
How big is the Fed's balance sheet?
The Federal Reserve held $6.75T in total assets on 10/21/2026, compared with $6.6T a year earlier.
Why does the Fed watch core PCE instead of CPI?
The Fed's 2% inflation goal is defined using the personal consumption expenditures (PCE) price index from the Bureau of Economic Analysis. Core PCE leaves out food and energy, whose prices swing a lot, to show the underlying trend.