United States Fed Funds Rate  1971-2017 | Data | Chart | Calendar

The Federal Reserve left the target range for its federal funds rate unchanged at 1 percent to 1.25 percent during its September 2017 meeting as widely expected. Policymakers kept forecasts for another rate hike this year and expect a higher GDP growth while core PCE inflation is seen lower. In addition, the central bank announced it will begin reducing the $4.5 trillion balance sheet in October. Interest Rate in the United States averaged 5.77 percent from 1971 until 2017, reaching an all time high of 20 percent in March of 1980 and a record low of 0.25 percent in December of 2008.

United States Fed Funds Rate
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December Rate Rise on the Table Despite Weak Inflation

Several Fed policymakers thought that another increase in the target range later this year was likely to be warranted if the medium-term outlook remained broadly unchanged, despite worries about the risk of stubbornly low inflation, minutes from last FOMC meeting showed.

Excerpts from the minutes of the FOMC's September 19-20 meeting:

Participants raised a number of important considerations about the implications of persistently low inflation for the path of the federal funds rate over the medium run. Several expressed concern that the persistence of low rates of inflation might imply that the underlying trend was running below 2 percent, risking a decline in inflation expectations. If so, the appropriate policy path should take into account the need to bolster inflation expectations in order to ensure that inflation returned to 2 percent and to prevent erosion in the credibility of the Committee's objective. It was also noted that the persistence of low inflation might result in the federal funds rate staying uncomfortably close to its effective lower bound. However, a few others pointed out the need to consider the lags in the response of inflation to tightening resource utilization and, thus, increasing upside risks to inflation as the labor market tightened further.

In their discussion of monetary policy, all participants agreed that the economy had evolved broadly as they had anticipated at the time of the June meeting and that the incoming data had not materially altered the medium-term economic outlook. Consistent with those assessments, participants saw it as appropriate, at this meeting, to announce implementation of the plan for reducing the Federal Reserve's securities holdings that the Committee released in June. Many underscored that the reduction in securities holdings would be gradual and that financial market participants appeared to have a clear understanding of the Committee's planned approach for a gradual normalization of the size of the Federal Reserve's balance sheet. Consequently, participants generally expected that any reaction in financial markets to the start of balance sheet normalization would likely be limited.

With the medium-term outlook little changed, inflation below 2 percent, and the neutral rate of interest estimated to be quite low, all participants thought it would be appropriate for the Committee to maintain the current target range for the federal funds rate at this meeting, and nearly all supported again indicating in the postmeeting statement that a gradual approach to increasing the federal funds rate will likely be warranted. Nevertheless, many participants expressed concern that the low inflation readings this year might reflect not only transitory factors, but also the influence of developments that could prove more persistent, and it was noted that some patience in removing policy accommodation while assessing trends in inflation was warranted. A few of these participants thought that no further increases in the federal funds rate were called for in the near term or that the upward trajectory of the federal funds rate might appropriately be quite shallow. Some other participants, however, were more worried about upside risks to inflation arising from a labor market that had already reached full employment and was projected to tighten further. 

Consistent with the expectation that a gradual rise in the federal funds rate would be appropriate, many participants thought that another increase in the target range later this year was likely to be warranted if the medium-term outlook remained broadly unchanged. Several others noted that, in light of the uncertainty around their outlook for inflation, their decision on whether to take such a policy action would depend importantly on whether the economic data in coming months increased their confidence that inflation was moving up toward the Committee's objective.

Federal Reserve | Joana Ferreira | joana.ferreira@tradingeconomics.com
10/11/2017 7:06:58 PM

Calendar GMT Actual Previous Consensus TEForecast
2017-06-14 06:00 PM Fed Interest Rate Decision 1.25% 1% 1.25% 1.25%
2017-07-26 06:00 PM Fed Interest Rate Decision 1.25% 1.25% 1.25% 1.25%
2017-09-20 06:00 PM Fed Interest Rate Decision 1.25% 1.25% 1.25% 1.25%
2017-11-01 06:00 PM Fed Interest Rate Decision 1.25% 1.25%
2017-11-22 07:00 PM FOMC Minutes
2017-12-13 07:00 PM FOMC Economic Projections

United States Money Last Previous Highest Lowest Unit
Interest Rate 1.25 1.25 20.00 0.25 percent [+]
Interbank Rate 1.36 1.36 10.63 0.22 percent [+]
Money Supply M0 3874483.00 3910028.00 4075024.00 48362.00 USD Million [+]
Money Supply M1 3553.10 3560.10 3560.10 138.90 USD Billion [+]
Money Supply M2 13692.40 13647.00 13692.40 286.60 USD Billion [+]
Foreign Exchange Reserves 124516.00 123690.00 153075.00 12128.00 USD Million [+]
Central Bank Balance Sheet 4440435.00 4426734.00 4473860.00 672444.00 USD Million [+]
Banks Balance Sheet 16313900.00 16313100.00 16313900.00 697581.70 USD Million [+]
Loans to Private Sector 2125.34 2108.03 2125.34 13.65 USD Billion [+]
Private Debt to GDP 199.60 198.70 213.40 155.70 percent [+]
Foreign Bond Investment 11494.00 -490.00 118012.00 -74329.00 USD Million [+]

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. 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 - actual data, historical chart and calendar of releases - was last updated on October of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
1.25 1.25 20.00 0.25 1971 - 2017 percent Daily

interest rate by Country

Russia 8.50 Sep/17
Brazil 8.25 Sep/17
Turkey 8.00 Sep/17
Mexico 7.00 Sep/17
India 6.00 Oct/17
China 4.35 Sep/17
Indonesia 4.25 Oct/17
Australia 1.50 Oct/17
South Korea 1.25 Oct/17
United States 1.25 Sep/17
Canada 1.00 Sep/17
United Kingdom 0.25 Sep/17
Euro Area 0.00 Sep/17
France 0.00 Sep/17
Germany 0.00 Sep/17
Italy 0.00 Sep/17
Netherlands 0.00 Sep/17
Spain 0.00 Sep/17
Japan -0.10 Sep/17
Switzerland -0.75 Sep/17