United States Fed Funds Rate  1971-2018 | Data | Chart | Calendar

The Federal Reserve raised the target range for the federal funds rate by 25bps to 2 percent to 2.25 percent during its September 2018 meeting, in line with market expectations. Policymakers see one more rate hike this year, 3 increases in 2019 and 1 in 2020, in line with previous projections. Interest Rate in the United States averaged 5.72 percent from 1971 until 2018, 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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Further and Gradual Rate Hikes Likely to Continue

The Fed considered that further gradual increases in the target range for the federal funds rate would be necessary to achieve a sustained economic expansion, minutes from last FOMC meeting showed. Some Fed officials said policy would need to become modestly restrictive for a time and other judged that it would be necessary to temporarily raise rates above the normalization level to prevent inflation from overshooting the 2 percent target.

Excerpts from the minutes of the Federal Open Market Committee September 25-26, 2018:

In their consideration of monetary policy at this meeting, participants generally judged that the economy was evolving about as anticipated, with real economic activity rising at a strong rate, labor market conditions continuing to strengthen, and inflation near the Committee's objective. Based on their current assessments, all participants expressed the view that it would be appropriate for the Committee to continue its gradual approach to policy firming by raising the target range for the federal funds rate 25 basis points at this meeting. Almost all considered that it was also appropriate to revise the Committee's postmeeting statement in order to remove the language stating that "the stance of monetary policy remains accommodative." Participants discussed a number of reasons for removing the language at this time, noting that the Committee would not be signaling a change in the expected path for policy, particularly as the target range for the federal funds rate announced after the Committee's meeting would still be below all of the estimates of its longer-run level submitted in the September SEP. In addition, waiting until the target range for the federal funds rate had been increased further to remove the characterization of the policy stance as "accommodative" could convey a false sense of precision in light of the considerable uncertainty surrounding all estimates of the neutral federal funds rate.

With regard to the outlook for monetary policy beyond this meeting, participants generally anticipated that further gradual increases in the target range for the federal funds rate would most likely be consistent with a sustained economic expansion, strong labor market conditions, and inflation near 2 percent over the medium term. This gradual approach would balance the risk of tightening monetary policy too quickly, which could lead to an abrupt slowing in the economy and inflation moving below the Committee's objective, against the risk of moving too slowly, which could engender inflation persistently above the objective and possibly contribute to a buildup of financial imbalances.

Participants offered their views about how much additional policy firming would likely be required for the Committee to sustainably achieve its objectives of maximum employment and 2 percent inflation. A few participants expected that policy would need to become modestly restrictive for a time and a number judged that it would be necessary to temporarily raise the federal funds rate above their assessments of its longer-run level in order to reduce the risk of a sustained overshooting of the Committee's 2 percent inflation objective or the risk posed by significant financial imbalances. A couple of participants indicated that they would not favor adopting a restrictive policy stance in the absence of clear signs of an overheating economy and rising inflation.

Federal Reserve | Joana Taborda | joana.taborda@tradingeconomics.com
10/17/2018 6:22:42 PM

Calendar GMT Actual Previous Consensus TEForecast
2018-06-13 06:00 PM Fed Interest Rate Decision 2% 1.75% 2% 2%
2018-08-01 06:00 PM Fed Interest Rate Decision 2% 2% 2% 2%
2018-09-26 06:00 PM Fed Interest Rate Decision 2.25% 2% 2.25% 2.25%
2018-10-23 01:30 PM Fed Kashkari Speech
2018-10-23 05:30 PM Fed Bostic Speech
2018-10-23 10:15 PM Fed Evans Speech

United States Money Last Previous Highest Lowest Unit
Interest Rate 2.25 2.00 20.00 0.25 percent [+]
Interbank Rate 2.47 2.47 10.63 0.22 percent [+]
Money Supply M0 3559894.00 3584502.00 4075024.00 48362.00 USD Million [+]
Money Supply M1 3731.10 3702.80 3731.10 138.90 USD Billion [+]
Money Supply M2 14253.70 14217.00 14253.70 286.60 USD Billion [+]
Foreign Exchange Reserves 124529.00 124694.00 153075.00 12128.00 USD Million [+]
Central Bank Balance Sheet 4170556.00 4169309.00 4473864.00 672444.00 USD Million [+]
Banks Balance Sheet 16794750.00 16749343.00 16853499.00 697581.70 USD Million [+]
Loans to Private Sector 2219.67 2217.37 2226.87 13.65 USD Billion [+]
Foreign Bond Investment 63131.00 18938.00 118012.00 -74329.00 USD Million [+]
Private Debt to GDP 202.80 202.00 213.50 155.70 percent [+]

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 2018.

Actual Previous Highest Lowest Dates Unit Frequency
2.25 2.00 20.00 0.25 1971 - 2018 percent Daily

interest rate by Country
Country Last
Argentina 72.54 Oct/18
Turkey 24.00 Sep/18
Mexico 7.75 Oct/18
Russia 7.50 Sep/18
Brazil 6.50 Sep/18
India 6.50 Oct/18
South Africa 6.50 Sep/18
Indonesia 5.75 Sep/18
China 4.35 Sep/18
Saudi Arabia 2.75 Sep/18
United States 2.25 Sep/18
Australia 1.50 Oct/18
Canada 1.50 Sep/18
South Korea 1.50 Oct/18
Singapore 1.11 Sep/18
United Kingdom 0.75 Sep/18
Euro Area 0.00 Sep/18
France 0.00 Sep/18
Germany 0.00 Sep/18
Italy 0.00 Sep/18
Netherlands 0.00 Sep/18
Spain 0.00 Sep/18
Japan -0.10 Sep/18
Switzerland -0.75 Sep/18