The benchmark interest rate in the United States is at 5.50 percent. The fed funds rate is likely at its peak for this tightening cycle and it will likely be appropriate to begin dialing back policy restraint at some point this year, although only when there is greater confidence that inflation is moving sustainably toward 2%, prepared remarks from Fed Chair Powell for his semiannual Monetary Policy Report to the Congress showed. Powell reinforced that the economic outlook is uncertain, and ongoing progress toward the 2% inflation objective is not assured and there are risks of reducing policy restraint either too soon or too late. As a result, the Fed will continue to assess the incoming data, the evolving outlook, and the balance of risks to make any adjustments to the fed funds rate. On the economic front, Powell noted that labor market tightness has eased and inflation has diminished substantially, although it remains above the target. source: Federal Reserve
The benchmark interest rate in the United States was last recorded at 5.50 percent. Interest Rate in the United States averaged 5.42 percent from 1971 until 2024, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008. This page provides the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United States Fed Funds Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on March of 2024.
The benchmark interest rate in the United States was last recorded at 5.50 percent. Interest Rate in the United States is expected to be 5.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United States Fed Funds Interest Rate is projected to trend around 3.75 percent in 2025, according to our econometric models.
United States Fed Funds Interest Rate
In the United States, the authority to set interest rates is divided between the Board of Governors of the Federal Reserve (Board) and the Federal Open Market Committee (FOMC). The Board decides on changes in discount rates after recommendations submitted by one or more of the regional Federal Reserve Banks. The FOMC decides on open market operations, including the desired levels of central bank money or the desired federal funds market rate.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 5.50 | 5.50 | 20.00 | 0.25 | 1971 - 2024 | percent | Daily |
News Stream
Fed Is In No Rush to Cut Rates
The fed funds rate is likely at its peak for this tightening cycle and it will likely be appropriate to begin dialing back policy restraint at some point this year, although only when there is greater confidence that inflation is moving sustainably toward 2%, prepared remarks from Fed Chair Powell for his semiannual Monetary Policy Report to the Congress showed. Powell reinforced that the economic outlook is uncertain, and ongoing progress toward the 2% inflation objective is not assured and there are risks of reducing policy restraint either too soon or too late. As a result, the Fed will continue to assess the incoming data, the evolving outlook, and the balance of risks to make any adjustments to the fed funds rate. On the economic front, Powell noted that labor market tightness has eased and inflation has diminished substantially, although it remains above the target.
2024-03-06
Fed Cautious on Cutting Interest Rates
Fed policymakers judged that the policy rate was likely at its peak for this tightening cycle, but generally noted that they did not expect it would be appropriate to reduce it until they had gained greater confidence that inflation was moving sustainably toward 2%, minutes from the January FOMC meeting showed. Also, participants highlighted the uncertainty associated with how long a restrictive monetary policy stance would need to be maintained. Only two policymakers highlighted the potential drawbacks of maintaining a restrictive stance for an extended period, while others noted the risks of moving too quickly. Meanwhile, the Fed reinforced the future path of the policy rate would depend on incoming data, the evolving outlook, and the balance of risks. The Federal Reserve kept the fed funds rate unchanged at a 23-year high of 5.25%-5.5% for a fourth consecutive meeting in January 2024, in line with expectations.
2024-02-21
Week Ahead - Feb 19th
Next week, investors' attention will turn to the FOMC minutes release, with traders scrutinizing any insights on when the Federal Reserve will start cutting interest rates. Simultaneously, the flash S&P Global US PMIs will offer an assessment of this month's economic performance. Beyond the US, attention will extend to flash PMIs for the Eurozone, Germany, France, UK, Japan and India. The Ifo Business Climate indicator in Germany, Turkey's interest rate decision, and Canada's inflation rate will also be in the spotlight.
2024-02-16
