The Federal Reserve cut the federal funds rate by 25bps in September 2025, bringing it to the 4.00%–4.25% range, in line with expectations. It is the first reduction in borrowing costs since December. Newly appointed Governor Stephen Miran stood alone in voting against the 25bps move, favoring a half-point cut instead. The central bank also released new economic projections. The Fed expects to lower rates by another 50bps by the end of 2025, and a quarter point in 2026, slightly more than expected in June. GDP growth projections were revised higher for 2025 (1.6% vs 1.4% seen in the June projection), 2026 (1.8% vs 1.6%) and 2027 (1.9% vs 1.8%). PCE inflation is seen at 3% for this year, the same as in June but the projection was revised higher for 2026 (2.6% vs 2.4%). Core PCE projection was also left at 3.1% for 2025 but was revised up for 2026 to 2.6% from 2.4%. The unemployment rate continues to be expected at 4.5% for 2025 but was revised lower to 4.4% from 4.5% for next year. source: Federal Reserve

The benchmark interest rate in the United States was last recorded at 4.25 percent. Interest Rate in the United States averaged 5.41 percent from 1971 until 2025, 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 September of 2025.

The benchmark interest rate in the United States was last recorded at 4.25 percent. Interest Rate in the United States is expected to be 4.25 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 3.50 percent in 2026 and 3.25 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-09-17 06:00 PM Interest Rate Projection - Longer 3% 3%
2025-09-17 06:00 PM Interest Rate Projection - Current 3.6% 3.9%
2025-09-17 06:00 PM Interest Rate Projection - 3rd Yr 3.1% 3.1%
2025-10-29 06:00 PM Fed Interest Rate Decision 4.25%
2025-12-10 07:00 PM Fed Interest Rate Decision
2026-01-28 07:00 PM Fed Interest Rate Decision


Related Last Unit Reference
Banks Balance Sheet 24456.60 USD Billion Sep 2025
Fed Balance Sheet 6608597.00 USD Million Sep 2025
Foreign Exchange Reserves 38203.00 USD Million Jul 2025
Inflation Rate YoY 2.90 percent Aug 2025
Fed Interest Rate 4.25 percent Sep 2025
Loans to Private Sector 2882.39 USD Billion Aug 2025
Money Supply M0 5686400.00 USD Million Aug 2025
Money Supply M1 18898.90 USD Billion Aug 2025
Money Supply M2 22195.40 USD Billion Aug 2025
Unemployment Rate 4.30 percent Aug 2025

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
4.25 4.50 20.00 0.25 1971 - 2025 percent Daily

News Stream
Fed Chair Powell Reiterates Shifting Balance of Risks
Federal Reserve Chairman Jerome Powell noted that recent evidence of weakness in the labor market prompted the central bank to shift their balance of risks to prioritize growth concerns in a speech in Rhode Island. The Chairman elaborated that the unemployment rate increased, despite remaining historically low, and job growth slowed, warranting the rate cut in September despite the persistent inflationary pressure. He also reiterated that there is no preset course to future rate decisions, but noted that policy remains restrictive. The FOMC cut its policy rate sby 25bps in September 2025 to the 4.00%–4.25% range, in line with expectations. The Fed's SEP reflected another 50bps by the end of 2025, and a quarter point in 2026, slightly more than expected in June. GDP growth projections were revised higher for 2025 (1.6% vs 1.4% seen in the June projection), 2026 (1.8% vs 1.6%) and 2027 (1.9% vs 1.8%).
2025-09-23
Fed Cuts Rates as Expected
The Federal Reserve cut the federal funds rate by 25bps in September 2025, bringing it to the 4.00%–4.25% range, in line with expectations. It is the first reduction in borrowing costs since December. Newly appointed Governor Stephen Miran stood alone in voting against the 25bps move, favoring a half-point cut instead. The central bank also released new economic projections. The Fed expects to lower rates by another 50bps by the end of 2025, and a quarter point in 2026, slightly more than expected in June. GDP growth projections were revised higher for 2025 (1.6% vs 1.4% seen in the June projection), 2026 (1.8% vs 1.6%) and 2027 (1.9% vs 1.8%). PCE inflation is seen at 3% for this year, the same as in June but the projection was revised higher for 2026 (2.6% vs 2.4%). Core PCE projection was also left at 3.1% for 2025 but was revised up for 2026 to 2.6% from 2.4%. The unemployment rate continues to be expected at 4.5% for 2025 but was revised lower to 4.4% from 4.5% for next year.
2025-09-17
Fed Expected to Cut Interest Rates
The Federal Reserve is widely expected to cut the federal funds rate by 25bps during its September 2025 meeting, bringing it to the 4.00%–4.25% range — the first reduction in borrowing costs since December. The move comes against the backdrop of a cooling labour market, with payroll growth holding below 100K for four consecutive months. Also, disinflation has stalled and inflation accelerated to 2.9% in August while the full impact of tariffs has yet to be felt. Expectations for a larger 50bps cut remain limited, though President Trump has also publicly urged the Fed to deliver a “big cut.” The Fed will also release updated economic projections and a new dot plot, with markets anticipating at least two further quarter-point cuts before year-end. The meeting comes as a US appeals court rejected President Trump’s attempt to oust Lisa Cook from the Fed Board of Governors, while Stephen Miran was confirmed by the Senate on Monday evening to join the Board.
2025-09-17