Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole Symposium, emphasized the potential necessity for the US Federal Reserve to implement additional interest rate hikes in order to effectively manage inflation, as policymakers carefully evaluate indications of diminishing inflation alongside the robust performance of the economy and labor market. At the same time, Powell suggested the Fed could hold rates steady at its next meeting in September, as officials assess the incoming data and the evolving outlook and risks. Powell has also reaffirmed the commitment of the central bank to maintain a monetary policy stance that is appropriately stringent to steer inflation towards the targeted 2 percent, while underscoring policymakers' cautious approach in determining whether to continue tightening or instead keep the policy rate stable while awaiting more data. source: Federal Reserve

Interest Rate in the United States averaged 5.42 percent from 1971 until 2023, 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 Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2023.

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 Rate is projected to trend around 4.75 percent in 2024 and 3.50 percent in 2025, according to our econometric models.

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United States Fed Funds Rate



Calendar GMT Reference Actual Previous Consensus TEForecast
2023-06-14 06:00 PM Interest Rate Projection - Longer 2.5% 2.5%
2023-06-14 06:00 PM Interest Rate Projection - Current 5.6% 5.1%
2023-07-26 06:00 PM Fed Interest Rate Decision 5.5% 5.25% 5.5% 5.5%
2023-09-06 06:00 PM Fed Beige Book
2023-09-20 06:00 PM Fed Interest Rate Decision 5.5% 5.5%
2023-10-18 06:00 PM Fed Beige Book


Related Last Previous Unit Reference
Unemployment Rate 3.50 3.60 percent Jul 2023
Inflation Rate 3.20 3.00 percent Jul 2023
Interest Rate 5.50 5.25 percent Jul 2023
Money Supply M1 18447.10 18507.00 USD Billion Jul 2023
Money Supply M0 5517200.00 5608000.00 USD Million Jul 2023
Money Supply M2 20902.70 20890.00 USD Billion Jul 2023
Central Bank Balance Sheet 8139066.00 8145727.00 USD Million Aug 2023
Banks Balance Sheet 22821.40 22818.80 USD Billion Aug 2023
Foreign Exchange Reserves 37114.00 36644.00 USD Million Jul 2023
Loans to Private Sector 2752.65 2758.10 USD Billion Jul 2023
Repo Rate 5.34 5.34 Aug 2023

United States Fed Funds 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 5.25 20.00 0.25 1971 - 2023 percent Daily

News Stream
Fed Prepared to Raise Rates Further to Combat Inflation
Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole Symposium, emphasized the potential necessity for the US Federal Reserve to implement additional interest rate hikes in order to effectively manage inflation, as policymakers carefully evaluate indications of diminishing inflation alongside the robust performance of the economy and labor market. At the same time, Powell suggested the Fed could hold rates steady at its next meeting in September, as officials assess the incoming data and the evolving outlook and risks. Powell has also reaffirmed the commitment of the central bank to maintain a monetary policy stance that is appropriately stringent to steer inflation towards the targeted 2 percent, while underscoring policymakers' cautious approach in determining whether to continue tightening or instead keep the policy rate stable while awaiting more data.
2023-08-25
Fed Leaves Door Open to Further Tightening
Most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy, minutes from the latest meeting showed. However, some participants cited the risks to the economy of pushing rates too far. Policymakers agreed that the level of uncertainty remained high and that future rate decisions would depend on data arriving in the coming months to help clarify the extent to which the disinflation process was continuing. The Fed raised the fed funds rate by 25bps to 5.25%-5.5% in July, the highest since January 2001.
2023-08-16
Fed Raises Rates by 25bps
The Federal Reserve raised the target range for the federal funds rate by 25bps to 5.25%-5.5% in July 2023, in line with market expectations, and bringing borrowing costs to the highest level since January 2001. Policymakers also said they will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of inflation and employment goals. Officials will continue to take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. Meanwhile, meeting minutes released on August 16th showed most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy, minutes from the latest meeting showed.
2023-07-26