As of October 10, 2023, the current target rate for the federal funds rate is 5.25-5.50% . This rate is set by the Federal Reserve and is used as a benchmark for nearly all interest rates. The Federal Reserve is expected to keep the target range for the federal funds rate at a 22-year high of 5.25%-5.5% . According to Fed Chair Jerome Powell’s latest statements, there may be another rate hike this year. Rates are projected to drop to 5.1% by the end of 2024 and to 3.9% at the end of 2025.