Federal Reserve

US fed funds rate breaks above Fed's target range

The Federal Reserve building is pictured on Tuesday August 6, 2019.
Caroline Brehman | CQ-Roll Call Group | Getty Images

A key interest rates the Federal Reserve aims to influence to control monetary policy broke above the top-end of the central bank's target range for the first time since the global credit crisis more than a decade ago.

The effective or average interest rate on what banks charge each other to borrow reserves overnight rose to 2.30% on Tuesday, above the Fed's current target range of 2.00%-2.25%, New York Federal Reserve data showed.