The Federal Reserve raised the target range for the fed funds rate by 75bps to 2.25%-2.5% during its July 2022 meeting, the fourth consecutive rate hike, and pushing borrowing costs to the highest level since 2019, matching market forecasts. The central bank said that ongoing increases in the target range will be appropriate and that it is prepared to adjust the stance of monetary policy if risks emerge that could impede the attainment of the Committee's goals. During the regular press conference, Chair Powell said he could not predict monetary policy range for next year and that next decisions will be data dependent. Powell also said the central bank will be looking for moderately restrictive level by the end of the year, meaning a 3% to 3.5% level for the fed funds rate. source: Federal Reserve

Interest Rate in the United States averaged 5.43 percent from 1971 until 2022, reaching an all time high of 20 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 2022.

Interest Rate in the United States is expected to be 2.75 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 3.75 percent in 2023, according to our econometric models.

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United States Fed Funds Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-06-15 06:00 PM Fed Interest Rate Decision 1.75% 1% 1.5% 1.75%
2022-06-15 06:00 PM Interest Rate Projection - Longer 2.5% 2.4%
2022-07-27 06:00 PM Fed Interest Rate Decision 2.5% 1.75% 2.5% 2.5%
2022-08-17 01:30 PM Fed Bowman Speech
2022-08-17 06:00 PM FOMC Minutes
2022-08-17 06:20 PM Fed Bowman Speech


Related Last Previous Unit Reference
Unemployment Rate 3.50 3.60 percent Jul 2022
Inflation Rate 8.50 9.10 percent Jul 2022
Interest Rate 2.50 1.75 percent Jul 2022
Money Supply M1 20545.40 20632.90 USD Billion Jun 2022
Money Supply M0 5506500.00 5591600.00 USD Million Jun 2022
Money Supply M2 21667.50 21754.20 USD Billion Jun 2022
Central Bank Balance Sheet 8874620.00 8890004.00 USD Million Aug 2022
Banks Balance Sheet 22780.50 22722.40 USD Billion Jul 2022
Foreign Exchange Reserves 36273.00 37610.00 USD Million Jun 2022
Loans to Private Sector 2661.89 2599.42 USD Billion Jun 2022
Repo Rate 2.31 2.31 Aug 2022

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
2.50 1.75 20.00 0.25 1971 - 2022 percent Daily

News Stream
Fed Raises Rates by 75bps
The Federal Reserve raised the target range for the fed funds rate by 75bps to 2.25%-2.5% during its July 2022 meeting, the fourth consecutive rate hike, and pushing borrowing costs to the highest level since 2019, matching market forecasts. The central bank said that ongoing increases in the target range will be appropriate and that it is prepared to adjust the stance of monetary policy if risks emerge that could impede the attainment of the Committee's goals. During the regular press conference, Chair Powell said he could not predict monetary policy range for next year and that next decisions will be data dependent. Powell also said the central bank will be looking for moderately restrictive level by the end of the year, meaning a 3% to 3.5% level for the fed funds rate.
2022-07-27
Fed Seen Raising Rates by Another 75bps
The Federal Reserve is widely expected to raise the target range for the fed funds rate by 75bps to 2.25%-2.5% during its July 2022 meeting, which would be the fourth consecutive rate hike, pushing borrowing costs to the highest level since 2019. Investors will keep a close look on any guidance for September, with the central bank seen reinforcing its rate hiking trajectory, but probably keeping the options open and data dependent. Price pressures remain on the upside and recession risks loom, with several indicators and corporate results pointing to economic stress. Markets are currently betting the Fed will begin cutting rates by next spring, after taking the fed funds rate to 3.4% by the end of this year. The Federal Reserve increased the funds rate by 75bps to 1.5%-1.75% during its June 2022 meeting, instead of 50bps initially expected.
2022-07-27
Fed Says More Restrictive Stance Could be Needed
Fed policymakers continued to anticipate that ongoing increases in the fed funds rate would be appropriate, and backed a 50 or 75 basis points hike in July, FOMC minutes from the June meeting showed. Officials also noted that the US economic outlook warranted moving to a restrictive stance of policy, and they recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist. At the same time, they noted that policy firming could slow economic growth for a time, but they saw the return of inflation to 2% as critical to achieving maximum employment on a sustained basis. The Federal Reserve increased the funds rate by 75bps to 1.5%-1.75% during its June 2022 meeting, instead of 50bps initially expected.
2022-07-06