Own the gold standard ✨ in financial data & analytics
fair value · 20 million securities worldwide · 50 year history · 10 year estimates · leading business news

Subscribe for $2
Analyse
Profile
🇺🇸

United States Proxy Funds Rate

Price

6.196 %
Change +/-
+0.106 %
Percentage Change
+1.73 %

The current value of the Proxy Funds Rate in United States is 6.196 %. The Proxy Funds Rate in United States increased to 6.196 % on 3/1/2024, after it was 6.09 % on 2/1/2024. From 6/1/1976 to 4/1/2024, the average GDP in United States was 4.72 %. The all-time high was reached on 9/1/1981 with 17.41 %, while the lowest value was recorded on 1/1/2011 with -1.42 %.

Source: Federal Reserve Bank of San Francisco

Proxy Funds Rate

  • 3 years

  • 5 years

  • 10 years

  • 25 Years

  • Max

Deputy Fund Rate

Proxy Funds Rate History

DateValue
3/1/20246.196 %
2/1/20246.09 %
1/1/20245.85 %
12/1/20236.31 %
11/1/20236.73 %
10/1/20236.7 %
9/1/20236.96 %
8/1/20236.99 %
7/1/20237.13 %
6/1/20236.91 %
1
2
3
4
5
...
51

Similar Macro Indicators to Proxy Funds Rate

NameCurrentPreviousFrequency
🇺🇸
Balance Sheets of Banks
23.487 T USD23.4 T USDfrequency_weekly
🇺🇸
Central Bank Balance Sheet
7.175 T USD7.178 T USDfrequency_weekly
🇺🇸
Effective Federal Funds Rate
5.33 %5.33 %frequency_daily
🇺🇸
Fed Capital Account Surplus
6.785 B USD6.785 B USDfrequency_weekly
🇺🇸
Foreign bond investments
55.9 B USD11.6 B USDMonthly
🇺🇸
Foreign currency reserves
35.316 B USD35.99 B USDMonthly
🇺🇸
Interbank rate
4.905 %4.92 %frequency_daily
🇺🇸
Interest Rate
5.5 %5.5 %frequency_daily
🇺🇸
Loans to the private sector
2.769 T USD2.773 T USDMonthly
🇺🇸
Money Supply M0
5.732 T USD5.725 T USDMonthly
🇺🇸
Money Supply M1
18.053 T USD18.063 T USDMonthly
🇺🇸
Money Supply M2
21.175 T USD21.059 T USDMonthly
🇺🇸
Private Debt to GDP
216.5 %224.5 %Annually
🇺🇸
Secured Overnight Financing Rate
5.4 %5.33 %frequency_daily

In the United States, the proxy funds rate utilizes a collection of 12 financial variables, such as Treasury rates, mortgage rates, and borrowing spreads, to evaluate the overall stance of monetary policy. This proxy rate can be understood as representing the federal funds rate typically associated with current financial market conditions, assuming these conditions were influenced solely by the funds rate.

What is Proxy Funds Rate?

The concept of the proxy funds rate holds a pivotal role within the broad spectrum of macroeconomic analysis. At Eulerpool, we recognize the importance of providing a comprehensive understanding of this economic indicator, essential for financial professionals, economists, and policymakers alike. The proxy funds rate is instrumental in interpreting the financial landscape and projecting future economic trends. Thus, it is imperative to delve deeper into its definition, significance, calculation, and implications on both micro and macroeconomic scales. The proxy funds rate can be understood as an estimate of the federal funds rate or similar benchmark interest rates in the absence of an officially published rate. This rate serves as a surrogate for the actual policy rate when it is not readily available, particularly during periods of unconventional monetary policy measures. Central banks, such as the Federal Reserve in the United States, may adopt non-traditional tools to influence economic stability, often leading to a disparity in the availability of direct interest rate measures. Consequently, the proxy funds rate emerges as a critical tool for financial analysis in such scenarios. One of the key aspects of the proxy funds rate lies in its calculation methodology. Generally, the rate is derived using a complex mix of econometric models, market data, and historical trends. Economists may incorporate a variety of financial indicators including Treasury yields, reverse repo operations, and other high-frequency financial data points. The essence of this computation is to closely mirror the behavior of the actual policy rate, ensuring that it provides a reliable benchmark for financial decision-making. Central to the utility of the proxy funds rate is its role in economic forecasting and policy analysis. It serves as an indispensable tool for gauging the stance of monetary policy, especially during periods when central banks resort to measures like quantitative easing or negative interest rate policies. In such contexts, traditional policy rates may not fully capture the expansive monetary conditions. The proxy funds rate, therefore, offers a clearer perspective on the degree of monetary accommodation being provided, helping stakeholders to better understand the broader economic implications. Moreover, the significance of the proxy funds rate extends to its impact on various components of the financial markets. For instance, bond yields, stock prices, and foreign exchange rates are all sensitive to shifts in the proxy funds rate. Fixed-income investors, in particular, closely monitor this rate as it influences the yield curve and expectations of future interest rate movements. A higher proxy funds rate may signal tighter financial conditions, potentially leading to a decline in bond prices. Conversely, a lower rate often suggests expansive monetary policy, which can buoy bond prices and stimulate riskier asset classes like equities. For policymakers, the proxy funds rate functions as a critical gauge for assessing the effectiveness of their monetary interventions. By comparing the proxy rate against desired policy outcomes, central banks can make more informed decisions about future policy adjustments. This feedback loop is essential for maintaining economic stability and achieving objectives such as price stability, full employment, and sustainable growth. In this regard, the proxy funds rate helps bridge the gap between unconventional monetary policy measures and their tangible economic impacts. Another layer of the proxy funds rate’s importance is its interaction with inflationary expectations. The proxy rate is often correlated with inflation projections, serving as a barometer for future price stability. If the proxy funds rate indicates an accommodative monetary stance, it may suggest the central bank’s commitment to staving off deflationary pressures, fostering an environment conducive to moderate inflation. This relationship underscores the importance of balancing monetary policy between too much easing, potentially leading to runaway inflation, and too much tightening, which could stifle economic recovery. From a global perspective, the proxy funds rate is also pivotal in analyzing international financial conditions. Given the interconnected nature of the global economy, shifts in the proxy funds rate of a major economy like the United States can have far-reaching implications. For instance, emerging markets often face capital flow volatility in response to changes in U.S. monetary policy signals. A rising proxy funds rate can attract capital inflows into the U.S., leading to currency depreciation and financial instability in emerging economies. Consequently, global investors and policymakers must keep a vigilant eye on proxy funds rate movements to navigate these complex interrelationships effectively. At Eulerpool, our commitment to delivering precise and comprehensive macroeconomic data is reflected in our extensive coverage of the proxy funds rate. By providing accurate and timely information, we empower our users to make informed decisions based on robust economic insights. Whether for academic research, financial planning, or policy analysis, our data tools and resources offer a vital foundation for understanding the nuances of the proxy funds rate and its implications on the broader economic landscape. In conclusion, the proxy funds rate stands as a central element in macroeconomic analysis, bridging the gap between real-world economic conditions and theoretical monetary policy frameworks. Its significance spans forecasting, market analysis, policymaking, and global financial stability. At Eulerpool, we strive to ensure that our users possess a deep and nuanced understanding of this crucial economic indicator, enabling them to navigate the complexities of the financial world with confidence and precision.