The Federal Reserve left the target range for its federal funds rate unchanged at 0-0.25% during its December meeting, in line with forecasts. The Fed will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward employment and inflation. Regarding new economic projections, the Fed sees the US economy shrinking less in 2020 (-2.4% vs -3.7% seen in September) and expand at a faster pace in both 2021 (4.2% vs 4%) and 2022 (3.2% vs 3%). PCE inflation is seen unchanged at 1.2% in 2020 and slightly higher next year (1.8% vs 1.7%) and in 2022 (1.9% vs 1.8%). Unemployment is also seen lower at 6.7% in 2020 (vs 7.6%), 5% in 2021 (vs 5.5%) and 4.2% in 2022 (vs 4.6%). The fed funds rate is likely to stay at current record low levels at least through 2023. source: Federal Reserve

Interest Rate in the United States averaged 5.59 percent from 1971 until 2020, 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 December of 2020.

Interest Rate in the United States is expected to be 0.25 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 0.25 in 12 months time. In the long-term, the United States Fed Funds Rate is projected to trend around 0.25 percent in 2021, according to our econometric models.

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United States Fed Funds Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 20.00 0.25 1971 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-07-29 06:00 PM Fed Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-09-16 06:00 PM Fed Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-11-05 07:00 PM Fed Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-12-16 07:00 PM Fed Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-01-27 07:00 PM Fed Interest Rate Decision 0.25% 0.25%
2021-01-27 07:30 PM Fed Press Conference
2021-02-17 07:00 PM FOMC Minutes
2021-03-17 06:00 PM FOMC Economic Projections


News Stream
Fed Leaves Rates and Asset Purchases Unchanged
The Federal Reserve left the target range for its federal funds rate unchanged at 0-0.25% during its December meeting, in line with forecasts. The Fed will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward employment and inflation. Regarding new economic projections, the Fed sees the US economy shrinking less in 2020 (-2.4% vs -3.7% seen in September) and expand at a faster pace in both 2021 (4.2% vs 4%) and 2022 (3.2% vs 3%). PCE inflation is seen unchanged at 1.2% in 2020 and slightly higher next year (1.8% vs 1.7%) and in 2022 (1.9% vs 1.8%). Unemployment is also seen lower at 6.7% in 2020 (vs 7.6%), 5% in 2021 (vs 5.5%) and 4.2% in 2022 (vs 4.6%). The fed funds rate is likely to stay at current record low levels at least through 2023.
2020-12-16
Fed to Keep Rates on Hold, Bond Buying in Focus
The Federal Reserve is expected to keep its fed funds rate steady at 0-0.25 percent at the end of its last two-day policy meeting of 2020, and to adopt a more dovish tone. Investors will keep a close eye on any changes in the Fed's bond-buying program, either in the pace or composition, such as buying more longer-term bonds and fewer shorter-term securities, in an attempt to hold interest rates low. The Fed has been buying $80 billion in Treasury bonds and $40 billion in mortgage bonds each month. Traders will also monitor if the Fed links asset purchases to measures of employment and inflation. Also, the central bank is expected to release a new outlook for the economy, with improved forecasts for the long term due to the coronavirus vaccine rollout.
2020-12-16
Powell Stresses Importance of Emergency Programs
Federal Reserve Chairman Jerome Powell highlighted the importance of the lending programs aimed at battling the economic fallout from the coronavirus pandemic. In prepared remarks for the Senate Finance Committee, he noted that even as recent positive vaccine news raised the prospect of a swifter economic recovery next year, it is not time to shut down emergency programs yet. In addition to the lending and liquidity programs, the Federal Reserve is expected to pump more money into the economy, expanding both its bond-buying programme and ultra-cheap loans to banks to support economic recovery. The Central Bank left the target range for its federal fund's rate unchanged at 0-0.25% during its November 2020 meeting.
2020-11-30
Fed Could Provide More Accommodation if Necessary
The Federal Reserve is committed to using its full range of tools to support the US economy, minutes from the last FOMC 4-5 November meeting showed. Policymakers noted that economic activity and employment had continued to recover but remained well below their levels at the beginning of the year and that the path of the economy would depend significantly on the course of the virus. Regarding the asset purchase program, Fed officials noted that the central bank could provide more accommodation, if appropriate, by increasing the pace of purchases; or by shifting its Treasury purchases to those with a longer maturity without increasing the size of its purchases; or by conducting purchases of the same pace and composition over a longer horizon. The Fed is currently buying $120 billion of Treasuries and mortgage-backed securities a month. The Fed left the target range for its federal funds rate unchanged at 0-0.25% during its November 2020 meeting.
2020-11-25

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.