The Federal Reserve raised the target range for the federal funds rate by 25bps to 2.25-2.5 percent during its December meeting and lowered forecasts for interest rate hikes in 2019 amid recent volatility in financial markets and slowing global growth. It is the fourth hike this year on the back of solid economic growth and strong labor market and despite heavy criticism from President Donald Trump. Interest Rate in the United States averaged 5.69 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 2.75 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.