As of November 1, 2023, the current federal interest rate is 5.25% to 5.5% . The Federal Reserve, which meets eight times a year to set the federal funds rate, determines this rate. The federal funds rate is the interest rate that U.S. banks pay one another to borrow or loan money overnight, and it affects interest rates on everyday consumer products, such as credit cards or mortgages. When the federal funds rate rises, it increases interest rates on other forms of debt, including money borrowed via credit cards, mortgages, and loans.