Federal Funds Rate (Target Range Upper Bound) vs Industrial Production Index (Monthly Change)
Federal Funds Rate (Target Range Upper Bound) is currently 4.5% (flat 0.0%). Industrial Production Index (Monthly Change) is currently -0.3% (down -1.0%).
| Metric | Federal Funds Rate (Target Range Upper Bound) | Industrial Production Index (Monthly Change) |
|---|---|---|
| Current value | 4.5% | -0.3% |
| Previous reading | 4.5% | 0.7% |
| Change | 0.0% | -1.0% |
| Trend | flat | down |
| Frequency | As Announced | Monthly |
| Source | Federal Reserve | Federal Reserve |
| Last updated | 2026-03-19 | 2026-03-18 |
| Category | rates | growth |
What Federal Funds Rate (Target Range Upper Bound) measures
The federal funds rate is the interest rate at which banks lend to each other overnight. Set by the Federal Reserve's FOMC, it is the most important interest rate in the world — influencing everything from mortgage rates to corporate borrowing costs to the value of the dollar.
The Fed has held rates at 4.25-4.50% since December 2024, pausing after three cuts. For executives, this means borrowing costs remain elevated: corporate bond yields, commercial real estate financing, and revolving credit all price off the fed funds rate. The 'higher for longer' stance means capital-intensive projects need higher return hurdles. Companies with strong cash positions have an advantage over those reliant on debt financing.
What Industrial Production Index (Monthly Change) measures
The Industrial Production Index measures the real output of manufacturing, mining, and electric and gas utilities. It is a coincident indicator that moves with the business cycle and reflects the goods-producing sector of the economy.
Industrial production fell 0.3% in March after strong February gains. Manufacturing, which accounts for about 75% of the index, has been volatile as companies adjust inventory levels. For executives in manufacturing and industrial sectors, the mixed readings suggest uneven demand rather than a clear downturn. The services sector remains the primary driver of U.S. economic growth.
Frequently asked
Federal Funds Rate (Target Range Upper Bound) is currently 4.5%, flat 0.0% from the previous reading. Source: Federal Reserve, updated as announced.
Industrial Production Index (Monthly Change) is currently -0.3%, down -1.0% from the previous reading. Source: Federal Reserve, updated monthly.
The Fed has held rates at 4.25-4.50% since December 2024, pausing after three cuts. For executives, this means borrowing costs remain elevated: corporate bond yields, commercial real estate financing, Industrial production fell 0.3% in March after strong February gains. Manufacturing, which accounts for about 75% of the index, has been volatile as companies adjust inventory levels. For executives i