The Federal Reserve raised the fed funds rate by 25bps to a range of 5%-5.25% during its May meeting, marking the 10th increase and bringing borrowing costs to their highest level since September 2007. The decision came in line with market expectations. The central bank also signaled that it may be done with a tightening cycle by taking out from the statement sentence pointing to the need for additional policy firming. Still, policymakers added that in determining the extent to which additional policy firming may be appropriate, they will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. Officials also noted that although the U.S. banking system is sound and resilient, tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation and the extent of these effects remains uncertain. source: Federal Reserve

Interest Rate in the United States averaged 5.42 percent from 1971 until 2023, 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 Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2023.

Interest Rate in the United States is expected to be 5.25 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 Rate is projected to trend around 3.75 percent in 2024 and 3.25 percent in 2025, according to our econometric models.

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United States Fed Funds Rate



Calendar GMT Actual Previous Consensus TEForecast
2023-03-22 06:00 PM Interest Rate Projection - 1st Yr 4.3% 5.1%
2023-03-22 06:00 PM Interest Rate Projection - 2nd Yr 3.1% 4.1%
2023-05-03 06:00 PM Fed Interest Rate Decision 5.25% 5% 5.25% 5.25%
2023-06-14 06:00 PM Fed Interest Rate Decision 5.25% 5.25%
2023-07-26 06:00 PM Fed Interest Rate Decision 5.25%
2023-09-20 06:00 PM Fed Interest Rate Decision


Related Last Unit Reference
Interest Rate 5.25 percent May 2023
Unemployment Rate 3.40 percent Apr 2023
Inflation Rate 5.00 percent Mar 2023
Money Supply M0 5571000.00 USD Million Mar 2023
Money Supply M1 18942.80 USD Billion Mar 2023
Money Supply M2 20818.10 USD Billion Mar 2023
Central Bank Balance Sheet 8593263.00 USD Million Apr 2023
Banks Balance Sheet 22950.90 USD Billion Apr 2023
Foreign Exchange Reserves 37566.00 USD Million Mar 2023
Loans to Private Sector 2787.94 USD Billion Mar 2023
Repo Rate 5.14 May 2023

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
5.25 5.00 20.00 0.25 1971 - 2023 percent Daily

News Stream
Fed Delivers 25bps Rate Hike
The Federal Reserve raised the fed funds rate by 25bps to a range of 5%-5.25% during its May meeting, marking the 10th increase and bringing borrowing costs to their highest level since September 2007. The decision came in line with market expectations. The central bank also signaled that it may be done with a tightening cycle by taking out from the statement sentence pointing to the need for additional policy firming. Still, policymakers added that in determining the extent to which additional policy firming may be appropriate, they will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. Officials also noted that although the U.S. banking system is sound and resilient, tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation and the extent of these effects remains uncertain.
2023-05-03
Fed to Raise Rates by 25bps
The Federal Reserve is expected to raise the fed funds rate by 25 basis points to a range of 5%-5.25% during its May 2023 meeting, marking the 10th increase and bringing borrowing costs to their highest level since September 2007. Investors will closely monitor any indications that the Fed is nearing the end of its rate hike campaign. Although inflation remains more than twice the central bank's target, it has been slowing down, and the economy is exhibiting signs of strain. The GDP growth in Q1 was significantly lower than anticipated, and the earnings season has so far shown a decline in earnings for a second consecutive quarter.
2023-05-03
Fed Sees Further Rate Hikes Appropriate
FOMC members observed that inflation remained much too high and that the labor market remained tight and as a result, they anticipated that some additional policy firming may be appropriate to attain a sufficiently restrictive policy stance to return inflation to 2%, minutes from the March 21st-22nd meeting showed. Still, many participants noted that the likely effects of recent banking-sector developments on economic activity and inflation had led them to lower their assessments of the rate target range and that the collapse of two regional banks would likely tip the economy into recession later this year. Several members considered it appropriate to hold interest rates steady in March, while others noted that they would have considered a 50 bps increase in the absence of the recent developments in the banking sector. The Fed raised the fed funds rate by 25bps to 4.75%-5% in March, pushing borrowing costs to new highs since 2007.
2023-04-12