The Federal Reserve kept the target range for the federal funds rate unchanged at 5.25%-5.50% during its May meeting for the sixth consecutive time, as ongoing inflationary pressures and a tight labor market indicate a stall in progress toward bringing inflation back down to its 2% target this year. Policymakers acknowledged that while inflation has moderated over the past year, it remains elevated, and there has been a notable lack of further progress towards achieving the central bank's goal in recent months. Still, Chair Powell stated that he does not foresee a hike as likely and believes that the current policy is sufficiently restrictive to achieve the 2% inflation target. The Fed has also declared its intention to reduce the speed of its quantitative tightening starting from June 1st, an adjustment that will involve cutting the maximum amount of Treasury securities being removed from the balance sheet by over 50%, down to $25 billion monthly from the previous $60 billion. source: Federal Reserve

The benchmark interest rate in the United States was last recorded at 5.50 percent. Interest Rate in the United States averaged 5.42 percent from 1971 until 2024, 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 Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2024.

The benchmark interest rate in the United States was last recorded at 5.50 percent. Interest Rate in the United States is expected to be 5.50 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 Interest Rate is projected to trend around 4.25 percent in 2025 and 3.25 percent in 2026, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2024-03-20 06:00 PM Interest Rate Projection - Longer 2.6% 2.5%
2024-03-20 06:00 PM Interest Rate Projection - Current 4.6% 5.4%
2024-05-01 06:00 PM Fed Interest Rate Decision 5.5% 5.5% 5.5% 5.5%
2024-05-06 06:00 PM Loan Officer Survey
2024-05-29 06:00 PM Fed Beige Book
2024-06-12 06:00 PM Fed Interest Rate Decision


Related Last Unit Reference
Banks Balance Sheet 23174.50 USD Billion Apr 2024
Central Bank Balance Sheet 7402434.00 USD Million Apr 2024
Foreign Exchange Reserves 35990.00 USD Million Mar 2024
Inflation Rate YoY 3.50 percent Mar 2024
Fed Interest Rate 5.50 percent Apr 2024
Loans to Private Sector 2764.99 USD Billion Feb 2024
Money Supply M0 5883000.00 USD Million Mar 2024
Money Supply M1 17997.50 USD Billion Mar 2024
Money Supply M2 20841.20 USD Billion Mar 2024
Unemployment Rate 3.80 percent Mar 2024

United States Fed Funds Interest 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
5.50 5.50 20.00 0.25 1971 - 2024 percent Daily


News Stream
Fed Holds Rates Amidst Inflationary Pressures
The Federal Reserve kept the target range for the federal funds rate unchanged at 5.25%-5.50% during its May meeting for the sixth consecutive time, as ongoing inflationary pressures and a tight labor market indicate a stall in progress toward bringing inflation back down to its 2% target this year. Policymakers acknowledged that while inflation has moderated over the past year, it remains elevated, and there has been a notable lack of further progress towards achieving the central bank's goal in recent months. Still, Chair Powell stated that he does not foresee a hike as likely and believes that the current policy is sufficiently restrictive to achieve the 2% inflation target. The Fed has also declared its intention to reduce the speed of its quantitative tightening starting from June 1st, an adjustment that will involve cutting the maximum amount of Treasury securities being removed from the balance sheet by over 50%, down to $25 billion monthly from the previous $60 billion.
2024-05-01
Fed Expected to Hold Rates Amidst Inflation Concerns
The US Federal Reserve is poised to maintain its policy rate within the 5.25%-5.50% range at the end of its two-day policy meeting this Wednesday, as enduring inflationary pressures and a labor market that remains taut indicate a stall in progress towards lowering inflation back to its 2% target this year. Investors eagerly await insights from Chair Jerome Powell, hoping to gauge the impact, if any, of recent inflationary trends on the prospects of near-term interest rate cuts. Expectations have shifted, with investors now placing roughly even odds on a 25 basis point reduction at the September meeting. Moreover, the probability of no rate cuts from the current range has risen to approximately one in four, a notable shift from near-zero probabilities as recently as April.
2024-05-01
Powell Says Rates to Stay Higher for Longer
Recent inflation data indicate the central bank may need more time to feel comfortable lowering interest rates, Fed Chair Powell said during a panel discussion at the Wilson Center in Washington alongside Bank of Canada Governor Macklem. “The recent data have clearly not given us greater confidence and instead indicate that is likely to take longer than expected to achieve that confidence,” Powell said. “Given the strength of the labor market and progress on inflation so far, it is appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us,” he added. This indicates that Fed officials don't feel a pressing need to lower rates and implies that any rate cuts in 2024 may occur toward the end of the year, if they happen at all.
2024-04-16