Target Fed Funds rate May 2025 event contract
We’ll be offering event contracts on the upper bound of the Target Fed funds rate in May 2025 beginning the week of March 17, 2025.
The federal funds rate is the interest rate at which banks and credit unions lend reserve balances to each other overnight. It’s set as a target range by the Federal Open Market Committee (FOMC) of the Federal Reserve (the US central bank).
The federal funds rate can change at any time, but it’s most commonly adjusted during scheduled meetings of the FOMC. The FOMC meets 8 times per year (roughly every 6 weeks) to discuss monetary policy, including potential changes to the federal funds rate.
This event will be based on the FOMC decision on May 7,2025, which determines the Fed funds rate at that time.
Learn more about how Robinhood event contracts work.
Target Fed funds rate in May 2025 contracts
You'll be able to open net new Yes or No contract positions for the following event outcomes.
Will the upper bounds of the Fed funds rate be:
- Above 4.00%
- Above 4.25%
You can’t simultaneously hold Yes and No contracts for the same event question. However, you can hold Yes and/or No outcomes for different contracts. For example, you can simultaneously hold Yes Above 4.00% and Yes Above 4.25% positions. You can also simultaneously hold a Yes Above 4.00% and a No Above 4.25%.
Key dates and payout timeline
The May 2025 fed funds event contracts contains the following key information available in the Timeline on the event detail page:
- Trading hours: 8 AM - 3 AM ET
- Contract resolve date: May 7, 2025
- The date the FOMC decision will be made
- Payout date: May 7, 2025
Changes to the FOMC decision date may impact the contract resolve and payout dates.
How can I trade the Target Fed funds rate in May 2025 contracts?
You can search Target Fed funds rate in May 2025 to pull up the event contract page.
For details on how to place event contract trades, check out Trading event contracts.
This contract has a position limit of 50,000 contracts per event question. You can’t hold Yes and No contracts simultaneously for the same contract.
Fees and commissions
Each trade has the following commissions and fees:
- Robinhood commission: $0.01 per contract bought or sold
- Exchange fee: $0.01 per contract bought or sold
There are no additional settlement fees.
Check out Fees and commissions for more information.
Disclosures
Restrictions and eligibility requirements apply. Futures, options on futures, and cleared swaps trading involves significant risk and is not appropriate for everyone. Please carefully consider if it's appropriate for you in light of your personal financial circumstances. Displayed prices are based on real-time market sentiment.
Read the Event Contracts Risk Disclosure for more information about the risks associated with event contracts.
Futures, options on futures and cleared swaps trading is offered by Robinhood Derivatives, LLC, a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA).