The Federal Reserve maintained the federal funds rate at a 23-year high of 5.25%-5.50% for the 8th consecutive meeting in July 2024, in line with expectations. Policymakers noted that there has been some further progress toward the 2% inflation goal although it remains somewhat elevated. Also, recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have moderated, and the unemployment rate has moved up but remains low. The central bank judges that the risks to achieving its employment and inflation goals continue to move into better balance. Still, the Fed does not expect it will be appropriate to reduce rates until it has gained greater confidence that inflation is moving sustainably toward 2%. During the regular press conference, Chair Powell said a September cut could be on the table if inflation moves down in line with expectations and that he could imagine scenarios in which the Fed could cut rates several times this year or not at all. source: Federal Reserve

The benchmark interest rate in the United States was last recorded at 5.50 percent. Interest Rate in the United States averaged 5.42 percent from 1971 until 2024, 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 August of 2024.

The benchmark interest rate in the United States was last recorded at 5.50 percent. Interest Rate in the United States is expected to be 5.00 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 2025 and 3.25 percent in 2026, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2024-06-12 06:00 PM Interest Rate Projection - Longer 2.8% 2.6%
2024-06-12 06:00 PM Interest Rate Projection - Current 5.1% 4.6%
2024-07-31 06:00 PM Fed Interest Rate Decision 5.5% 5.5% 5.5% 5.5%
2024-08-22 12:00 AM Jackson Hole Symposium
2024-08-23 12:00 AM Jackson Hole Symposium
2024-08-24 12:00 AM Jackson Hole Symposium


Related Last Previous Unit Reference
Banks Balance Sheet 23350.00 23300.60 USD Billion Jul 2024
Fed Balance Sheet 7175256.00 7178391.00 USD Million Aug 2024
Foreign Exchange Reserves 35243.00 35758.00 USD Million Jun 2024
Inflation Rate YoY 3.00 3.30 percent Jun 2024
Fed Interest Rate 5.50 5.50 percent Jul 2024
Loans to Private Sector 2768.60 2773.30 USD Billion Jul 2024
Money Supply M0 5731800.00 5725200.00 USD Million Jun 2024
Money Supply M1 18063.40 18022.80 USD Billion Jun 2024
Money Supply M2 21024.70 20963.40 USD Billion Jun 2024
Unemployment Rate 4.30 4.10 percent Jul 2024

United States Fed Funds Interest 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
5.50 5.50 20.00 0.25 1971 - 2024 percent Daily


News Stream
Fed Leaves Rates on Hold but Signals Progress on Inflation
The Federal Reserve maintained the federal funds rate at a 23-year high of 5.25%-5.50% for the 8th consecutive meeting in July 2024, in line with expectations. Policymakers noted that there has been some further progress toward the 2% inflation goal although it remains somewhat elevated. Also, recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have moderated, and the unemployment rate has moved up but remains low. The central bank judges that the risks to achieving its employment and inflation goals continue to move into better balance. Still, the Fed does not expect it will be appropriate to reduce rates until it has gained greater confidence that inflation is moving sustainably toward 2%. During the regular press conference, Chair Powell said a September cut could be on the table if inflation moves down in line with expectations and that he could imagine scenarios in which the Fed could cut rates several times this year or not at all.
2024-07-31
Fed to Signal Rate Cut
The Federal Reserve is anticipated to maintain the federal funds rate at a 23-year high of 5.25%-5.50% for the 8th consecutive meeting in July 2024. However, policymakers are expected to deliver a crucial hint that they might lower borrowing costs in coming months amid signs of cooling inflation and a slowing labor market. In June, annual headline inflation dropped to 3%, its lowest level since June 2023, while the core rate hit an over three-year low of 3.3%. The annual PCE rate also declined to 2.5% from 2.6%. The core PCE rate, which is the central bank’s preferred inflation gauge, remained at 2.6%, well below its peak in 2022. Additionally, the unemployment rate is at 2021-highs of 4.1%, payrolls are slowing and lay-offs are rising.
2024-07-31
Chair Powell Reinforces Cautious Approach on Rate Cuts
Chair Powell reinforced that the central bank does not expect it will be appropriate to reduce interest rates until it has gained greater confidence that inflation is moving sustainably toward 2%, with data for the first quarter of this year did not supporting such greater confidence, remarks to Powell's Semiannual Monetary Policy Report to the Congress showed. However, the most recent inflation readings have shown some modest further progress, and more good data would strengthen our confidence that inflation is moving sustainably toward the target. Powell added that reducing policy restraint too late or too little could unduly weaken economic activity and employment while doing it too soon or too much could stall or even reverse the progress we have seen on inflation. As a result, the Fed will continue to make decisions meeting by meeting.
2024-07-09