In testimony to the Senate banking committee on Wednesday, Fed Chair Powell acknowledged that steep interest rate hikes may cause a recession in the US, and avoiding it mostly depends on the factors beyond Fed control. “The other risk, though, is that we would not manage to restore price stability and that we would allow this high inflation to get entrenched in the economy,” Powell added. “We can’t fail on that task. We have to get back to 2% inflation.” In regards to recent rate hikes Chair also said "We anticipate that ongoing rate increases will be appropriate", "Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We, therefore, will need to be nimble in responding to incoming data and the evolving outlook." The Federal Reserve increased the funds rate by 75bps to 1.5%-1.75% during its June 2022 meeting, instead of 50bps initially expected, after the inflation rate unexpectedly accelerated last month to 41-year highs. source: Federal Reserve

Interest Rate in the United States averaged 5.44 percent from 1971 until 2022, 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 June of 2022.

Interest Rate in the United States is expected to be 1.75 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 3.75 percent in 2023, according to our econometric models.

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United States Fed Funds Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-06-15 06:00 PM Fed Interest Rate Decision 1.75% 1% 1.5% 1.75%
2022-06-15 06:00 PM Interest Rate Projection - Longer 2.5% 2.4%
2022-06-15 06:00 PM Interest Rate Projection - 2nd Yr 3.4% 2.8%
2022-06-28 04:30 PM Fed Daily Speech
2022-06-29 10:30 AM Fed Mester Speech
2022-06-29 01:00 PM Fed Chair Powell Speech


Related Last Previous Unit Reference
Interest Rate 1.75 1.00 percent Jun 2022
Inflation Rate 8.60 8.30 percent May 2022
Unemployment Rate 3.60 3.60 percent May 2022
Money Supply M1 20620.50 20710.10 USD Billion Apr 2022
Money Supply M0 5885200.00 6134500.00 USD Million Apr 2022
Money Supply M2 21728.00 21809.70 USD Billion Apr 2022
Central Bank Balance Sheet 8934346.00 8932420.00 USD Million Jun 2022
Banks Balance Sheet 22653.50 22720.00 USD Billion Jun 2022
Foreign Exchange Reserves 37610.00 37054.00 USD Million May 2022
Loans to Private Sector 2599.42 2561.28 USD Billion May 2022
Repo Rate 1.46 1.46 Jun 2022

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.
Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.00 20.00 0.25 1971 - 2022 percent Daily

News Stream
Fed Chair Warns US Recession Possible
In testimony to the Senate banking committee on Wednesday, Fed Chair Powell acknowledged that steep interest rate hikes may cause a recession in the US, and avoiding it mostly depends on the factors beyond Fed control. “The other risk, though, is that we would not manage to restore price stability and that we would allow this high inflation to get entrenched in the economy,” Powell added. “We can’t fail on that task. We have to get back to 2% inflation.” In regards to recent rate hikes Chair also said "We anticipate that ongoing rate increases will be appropriate", "Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We, therefore, will need to be nimble in responding to incoming data and the evolving outlook." The Federal Reserve increased the funds rate by 75bps to 1.5%-1.75% during its June 2022 meeting, instead of 50bps initially expected, after the inflation rate unexpectedly accelerated last month to 41-year highs.
2022-06-22
Fed Delivers 75bps Rate Hike
The Federal Reserve increased the funds rate by 75bps to 1.5%-1.75% during its June 2022 meeting, instead of 50bps initially expected, after the inflation rate unexpectedly accelerated last month to 41-year highs. It is the biggest rate increase since 1994, and Chair Powell signaled a similar move could come at the next meeting but he does not expect 75bps moves to be common. Policymakers see interest rates increasing to 3.4% this year, well above 1.9% expected in March. Meanwhile, the economy is seen expanding 1.7% this year, below 2.8% estimated in March and the growth outlook was also lowered to both 2023 (1.7% vs 2.2%) and 2024 (1.9% vs 2%). PCE inflation is seen higher at 5.2% in 2022 (vs 4.3% expected in March) while the outlook was revised lower for both 2023 (2.6% vs 2.7%) and 2024 (2.2% vs 2.3%). The jobless rate is seen higher for the 3-year period: 3.7% for 2022 (vs 3.5%), 3.9% in 2023 (3.5%) and 4.1% in 2024 (vs 3.6%).
2022-06-15
Fed to Raise Rates for 3rd Time
The Federal Reserve is expected to raise the target range for the fed funds rate for a third straight time in June, with investors increasingly betting on a 75bps hike instead of 50bps initially expected, after the inflation rate unexpectedly accelerated last month to 41-year highs. The central bank will also deliver new economic and interest rate forecasts and both the so-called dot plot of rate projections and Fed Chair press conference later on will be scrutinised for any clues whether the central bank will raise rates more aggressively. In March, policymakers estimated their policy rate would end 2022 around 1.9%.
2022-06-15