Fed Chair Powell sees inflationary pressures to last well into the middle of 2022 and expects the Fed to raise interest rates and end asset purchases this year while a balance-sheet contraction could perhaps start later in 2022. During his Senate confirmation hearing, Powell also noted the Fed could raise rates more if needed, to get inflation back to the target level and prevent it from becoming entrenched. The Fed announced at its December 2021 meeting it would end its pandemic-era bond purchases in March, paving the way for three interest rate hikes by the end of 2022. But FOMC minutes released later showed a more hawkish Fed, and the central bank signalled it may become warranted to increase the federal funds rate sooner or at a faster pace than previously anticipated. source: Federal Reserve

Interest Rate in the United States averaged 5.47 percent from 1971 until 2021, reaching an all time high of 20 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 January of 2022.

Interest Rate in the United States is expected to be 0.50 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 1.75 percent in 2023, according to our econometric models.

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United States Fed Funds Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-12-15 07:00 PM Fed Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-12-15 07:00 PM Interest Rate Projection - Current 0.1% 0.1%
2021-12-15 07:00 PM Interest Rate Projection - 1st Yr 0.9% 0.3%
2022-01-26 07:00 PM Fed Interest Rate Decision 0.25% 0.25% 0.25%
2022-02-16 07:00 PM FOMC Minutes
2022-03-16 06:00 PM FOMC Economic Projections


Related Last Previous Unit Reference
Unemployment Rate 3.90 4.20 percent Dec/21
Inflation Rate 7.00 6.80 percent Dec/21
Interest Rate 0.25 0.25 percent Dec/21
Money Supply M1 20345.00 20083.10 USD Billion Nov/21
Money Supply M0 6394800.00 6331000.00 USD Million Nov/21
Money Supply M2 21436.70 21187.10 USD Billion Nov/21
Central Bank Balance Sheet 8765721.00 8757460.00 USD Million Jan/22
Banks Balance Sheet 22787.30 22852.30 USD Billion Dec/21
Foreign Exchange Reserves 40816.00 41276.00 USD Million Nov/21
Loans to Private Sector 2495.69 2444.27 USD Billion Dec/21
Repo Rate 0.05 0.04 Jan/22

News Stream
Fed Remains Prepared to Prevent Entrenched Inflation
Fed Chair Powell sees inflationary pressures to last well into the middle of 2022 and expects the Fed to raise interest rates and end asset purchases this year while a balance-sheet contraction could perhaps start later in 2022. During his Senate confirmation hearing, Powell also noted the Fed could raise rates more if needed, to get inflation back to the target level and prevent it from becoming entrenched. The Fed announced at its December 2021 meeting it would end its pandemic-era bond purchases in March, paving the way for three interest rate hikes by the end of 2022. But FOMC minutes released later showed a more hawkish Fed, and the central bank signalled it may become warranted to increase the federal funds rate sooner or at a faster pace than previously anticipated.
2022-01-11
Fed Hints It May Remove Stimulus Quicker
Fed policymakers noted that given the outlook for the economy, labour market and inflation it may become warranted to increase the federal funds rate sooner or at a faster pace than previously anticipated, minutes from the last FOMC meeting of 2021 showed. Some Fed policymakers also noted that it could be appropriate to start reducing the size of the balance sheet soon after the central bank begins raising interest rates.
2022-01-05
Fed Doubles Taper Pace, Sees Three Rate Hikes in 2022
The Federal Reserve announced at its December meeting it would end its pandemic-era bond purchases in March, paving the way for three interest rate hikes by the end of 2022, as policymakers voiced concerns over persistently high inflation against a backdrop of a steady recovery in the labor market. The central bank doubled the pace of taper to $30 billion a month, putting it on track to conclude it in March 2022. Still, the US central bank noted that risks to the economic outlook remain due to the uncertainty around the Omicron coronavirus variant and its impact on the economy, while reiterating that interest rates will be held at record-low levels until maximum employment is achieved. Officials have revised up the 2022 inflation forecast to 2.6% from 2.2% projected in September, while the unemployment rate is seen falling to 3.5%.
2021-12-15

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.