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.