The Federal Reserve kept the target range for the federal funds rate at 2.25 percent to 2.25 percent during its May meeting, saying that economic activity has been rising at a solid rate and that labour market remains strong. The Committee also reaffirmed its position to be patient about further policy firming. Interest Rate in the United States averaged 5.67 percent from 1971 until 2019, reaching an all time high of 20 percent in March of 1980 and a record low of 0.25 percent in December of 2008.

Interest Rate in the United States is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in the United States to stand at 2.50 in 12 months time. In the long-term, the United States Fed Funds Rate is projected to trend around 2.75 percent in 2020, according to our econometric models.

United States Fed Funds Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-12-19 07:00 PM Fed Interest Rate Decision 2.5% 2.25% 2.5% 2.5%
2019-01-30 07:00 PM Fed Interest Rate Decision 2.5% 2.5% 2.5% 2.5%
2019-03-20 06:00 PM Fed Interest Rate Decision 2.5% 2.5% 2.5% 2.5%
2019-05-01 06:00 PM Fed Interest Rate Decision 2.5% 2.5% 2.5% 2.5%
2019-05-20 01:30 PM Fed Harker Speech
2019-05-20 05:05 PM Fed Williams Speech
2019-05-20 05:05 PM Fed Clarida Speech



Fed Holds Rates as Expected, Reaffirms Patience Approach

The Federal Reserve kept the target range for the federal funds rate at 2.25 percent to 2.25 percent during its May meeting, saying that economic activity has been rising at a solid rate and that labour market remains strong. The Committee also reaffirmed its position to be patient about further policy firming.

FOMC Statement:

Information received since the Federal Open Market Committee met in March indicates that the labor market remains strong and that economic activity rose at a solid rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Growth of household spending and business fixed investment slowed in the first quarter. On a 12-month basis, overall inflation and inflation for items other than food and energy have declined and are running below 2 percent. On balance, market-based measures of inflation compensation have remained low in recent months, and survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective as the most likely outcomes. In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.

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 maximum employment objective and its symmetric 2 percent inflation objective. 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.


Federal Reserve | Stefanie Moya | stefanie.moya@tradingeconomics.com
5/1/2019 6:22:41 PM


News

Fed Reaffirms "Patient" Approach on Rates
Fed officials do not expect to make any changes to interest rate policy this year amid concerns about ongoing trade talks, Brexit negotiations and the possibility of a greater than expected economic slowdown in Europe and China, minutes of the March meeting showed. Policymakers also noted that their views of the appropriate target range for the federal funds rate could shift in either direction based on incoming data and other developments.
Published on 2019-04-10

Fed Sees Rates Unchanged in 2019
The Federal Reserve held the target range for the federal funds rate at 2.25-2.5 percent during its March meeting and lowered its forecast for US economic growth, as widely expected. Fed officials now expect rates to remain at current levels at least until the end of the year, compared to December's projection of two rate hikes.
Published on 2019-03-20

Fed Policymakers Unsure on Future Rate Hikes: Minutes
Many Fed officials suggested that it was not yet clear what adjustments to the target range for the federal funds rate may be appropriate later this year, minutes of the January meeting showed. Policymakers also noted that some risks to the downside had increased and pledged to end reductions to its balance sheet before the end of 2019.
Published on 2019-02-20

Fed Signals Hold on Rate Increases
The Federal Reserve held the target range for the federal funds rate at 2.25-2.5 percent during its first policy meeting of 2019 and reaffirmed its position to be patient about further policy firming in light of recent global economic and financial developments and muted inflation pressures.
Published on 2019-01-31



United States Money Last Previous Highest Lowest Unit
Interest Rate 2.50 2.50 20.00 0.25 percent [+]
Money Supply M0 3286668.00 3381470.00 4075039.00 48362.00 USD Million [+]
Money Supply M1 3782.80 3721.70 3782.80 138.90 USD Billion [+]
Interbank Rate 2.52 2.52 10.63 0.22 percent [+]
Money Supply M2 14509.00 14477.80 14509.00 286.60 USD Billion [+]
Central Bank Balance Sheet 3952113.00 3988586.00 4473864.00 672444.00 USD Million [+]
Banks Balance Sheet 17088467.00 17039662.00 17117598.00 697581.70 USD Million [+]
Foreign Exchange Reserves 125175.00 125827.00 153075.00 12128.00 USD Million [+]
Loans to Private Sector 2343.34 2347.18 2347.18 13.65 USD Billion [+]
Foreign Bond Investment -12526.00 19910.00 118012.00 -77351.00 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 May of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
2.50 2.50 20.00 0.25 1971 - 2019 percent Daily




Country Last Previous
Argentina 71.57 May/19
Turkey 24.00 Apr/19
Mexico 8.25 May/19
Russia 7.75 Apr/19
South Africa 6.75 Apr/19
Brazil 6.50 May/19
India 6.00 Apr/19
Indonesia 6.00 May/19
China 4.35 Apr/19
Saudi Arabia 3.00 Apr/19
United States 2.50 May/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 May/19
United Kingdom 0.75 May/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Apr/19
Switzerland -0.75 Apr/19


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