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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
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| Period | Effective federal funds rate |
|---|---|
| Sep 2026 | 3.75% |
| Dec 2025 | 3.72% |
| Dec 2024 | 4.48% |
| Dec 2023 | 5.33% |
| Dec 2022 | 4.10% |
| Dec 2021 | 0.08% |
| Dec 2020 | 0.09% |
| Dec 2019 | 1.55% |
| Dec 2018 | 2.27% |
| Dec 2017 | 1.30% |
| Dec 2016 | 0.54% |
| Dec 2015 | 0.24% |
| Dec 2014 | 0.12% |
| Dec 2013 | 0.09% |
| Dec 2012 | 0.16% |
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.
| Rate | Latest | As of |
|---|---|---|
| Federal funds target range | 3.75% to 4.00% | 10/26/2026 |
| Effective federal funds rate (monthly) | 3.75% | Sep 2026 |
| Interest on reserve balances | 3.90% | 10/26/2026 |
| SOFR (overnight secured rate) | 3.92% | 10/23/2026 |
| Target range a year earlier | 4.00% 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.
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| Period | M2 |
|---|---|
| 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
| Year | M2 | 1-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
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| Period | Fed 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.