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

The Federal Reserve raised the target range for the federal funds rate by a quarter point to 1.25-1.5 percent during its December 2017 meeting, saying that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. The central bank has forecast three rate hikes in 2018. Interest Rate in the United States averaged 5.75 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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Fed Hikes Interest Rates as Expected


The Federal Reserve raised the target range for the federal funds rate by a quarter point to 1.25-1.5 percent during its December 2017 meeting, saying that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. The central bank has forecast three rate hikes in 2018.

GDP growth for 2017 is seen higher at 2.5 percent (compared to 2.4 percent in the September projection) and the 2018 forecast was also raised to 2.5 percent (compared to 2.1 percent). PCE inflation is expected at 1.7 percent in 2017 (compared to 1.6 percent) and at 1.9 percent next year (unchanged from September). Meanwhile, forecasts for the core PCE inflation were unchanged at 1.5 percent in 2017 and at 1.9 percent in 2018.

Excerpts from FOMC Statement:

Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. Averaging through hurricane-related fluctuations, job gains have been solid, and the unemployment rate declined further. Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters. On a 12-month basis, both overall inflation and inflation for items other than food and energy have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Hurricane-related disruptions and rebuilding have affected economic activity, employment, and inflation in recent months but have not materially altered the outlook for the national economy. Consequently, the Committee continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will remain strong. Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term but to stabilize around the Committee's 2 percent objective over the medium term. Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely.

In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1-1/4 to 1-1/2 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

Federal Reserve | Joana Ferreira | joana.ferreira@tradingeconomics.com
12/13/2017 7:21:00 PM



Calendar GMT Actual Previous Consensus TEForecast
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% 1.25% 1.25%
2017-12-13 07:00 PM Fed Interest Rate Decision 1.5% 1.25% 1.5% 1.5%
2018-01-03 07:00 PM FOMC Minutes
2018-01-31 07:00 PM Fed Interest Rate Decision 1.5%
2018-03-21 06:00 PM FOMC Economic Projections


United States Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.25 20.00 0.25 percent [+]
Interbank Rate 1.57 1.57 10.63 0.22 percent [+]
Money Supply M0 3907715.00 3829898.00 4075024.00 48362.00 USD Million [+]
Money Supply M1 3594.80 3553.10 3594.80 138.90 USD Billion [+]
Money Supply M2 13747.30 13692.40 13747.30 286.60 USD Billion [+]
Foreign Exchange Reserves 122632.00 123863.00 153075.00 12128.00 USD Million [+]
Central Bank Balance Sheet 4418185.00 4420808.00 4473860.00 672444.00 USD Million [+]
Banks Balance Sheet 16634200.00 16542900.00 16634200.00 697581.70 USD Million [+]
Loans to Private Sector 2126.32 2125.34 2126.32 13.65 USD Billion [+]
Private Debt to GDP 199.60 198.70 213.40 155.70 percent [+]
Foreign Bond Investment 12735.00 17477.00 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 December of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.25 20.00 0.25 1971 - 2017 percent Daily




interest rate by Country
Country Last
Russia 8.25 Oct/17
Turkey 8.00 Dec/17
Brazil 7.00 Dec/17
Mexico 7.00 Nov/17
India 6.00 Dec/17
China 4.35 Nov/17
Indonesia 4.25 Dec/17
Australia 1.50 Dec/17
South Korea 1.50 Nov/17
United States 1.50 Dec/17
Canada 1.00 Dec/17
United Kingdom 0.50 Dec/17
Euro Area 0.00 Dec/17
France 0.00 Dec/17
Germany 0.00 Dec/17
Italy 0.00 Dec/17
Netherlands 0.00 Dec/17
Spain 0.00 Dec/17
Japan -0.10 Oct/17
Switzerland -0.75 Dec/17