The Federal Reserve kept the target range for the federal funds rate at 2 percent to 2.25 percent during its November 2018 meeting, saying that the labor market has continued to strengthen and that economic activity has been rising at a strong rate while inflation remains near its 2 percent target. The Fed also reaffirmed its plans to continue raising rates gradually, suggesting a rate hike at its next meeting in December is likely. Interest Rate in the United States averaged 5.70 percent from 1971 until 2018, 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 3.00 in 12 months time. In the long-term, the United States Fed Funds Rate is projected to trend around 3.50 percent in 2020, according to our econometric models.