The Federal Reserve left the fed funds rate steady at a 23-year high of 5.25%-5.5% for a fifth consecutive meeting in March 2024, in line with market expectations. Policymakers still plan to cut interest rates three times this year, similar to the quarterly forecasts in December. The plot also indicated three cuts in 2025, one fewer than in December, and three more reductions in 2026. Meanwhile, US GDP growth is seen higher in 2024 (2.1% vs 1.4% in the December projection), 2025 (2% vs 1.8%) and 2026 (2% vs 1.9%). PCE inflation forecasts were kept unchanged for 2024 (2.4% vs 2.4%) but were raised for 2025 (2.2% vs 2.1%) while the core rate is seen higher this year (2.6% vs 2.4%) while forecasts were left unchanged for 2025 at 2.2%. The unemployment rate is seen lower at 4% in 2024 (vs 4.1%) but projections were kept at 4.1% for next year. 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 April 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 4.25 percent in 2025 and 3.25 percent in 2026, 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
Powell Says Rates to Stay Higher for Longer
Recent inflation data indicate the central bank may need more time to feel comfortable lowering interest rates, Fed Chair Powell said during a panel discussion at the Wilson Center in Washington alongside Bank of Canada Governor Macklem. “The recent data have clearly not given us greater confidence and instead indicate that is likely to take longer than expected to achieve that confidence,” Powell said. “Given the strength of the labor market and progress on inflation so far, it is appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us,” he added. This indicates that Fed officials don't feel a pressing need to lower rates and implies that any rate cuts in 2024 may occur toward the end of the year, if they happen at all.
2024-04-16
Fed Reinforces Caution on Cutting Interest Rates
The Federal Reserve does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%, minutes from the FOMC meeting in March showed. Policymakers generally noted their uncertainty about the persistence of high inflation and expressed the view that recent data had not increased their confidence that inflation was moving sustainably down to 2%. At the same time, the central bank remains highly attentive to inflation risks but it had also anticipated that there would be some unevenness in monthly inflation readings as inflation returned to target. The Federal Reserve left the fed funds rate steady at a 23-year high of 5.25%-5.5% for a fifth consecutive meeting in March 2024, in line with market expectations. The so-called dot plot showed policymakers were still planning to cut interest rates three times this year, similar to the quarterly forecasts in December.
2024-04-10
Powell Reiterates Fed In No Hurry to Cut Rates
Fed Chair Powell said at the San Francisco Fed that PCE inflation data for February was more along the lines of what the Fed wants to see and that it is good to see something coming in line with expectations. However, the latest readings aren’t as good as what policymakers saw last year and the Fed can wait and become more confident before cutting interest rates. In fact, policymakers don't need to be in a hurry to reduce borrowing costs. The Fed's base case is for inflation to come down but if the base case doesn't happen the Fed would hold rates where they are for longer, Chair Powell added.
2024-03-29
