The Federal Reserve reiterated it was committed to using its full range of tools to support the US economy, as the uncertainty surrounding the economic outlook remained elevated, minutes of the December 15-16 policy meeting showed. Also, policymakers sought to reassure market participants they would get plenty of notice before the asset purchases were curtailed. Fed members agreed that the path of the economy would depend significantly on the course of the virus and that the ongoing public health crisis would continue to weigh on economic activity, employment, and inflation in the near term. In addition, the central bank noted that, with the pandemic worsening across the country, the economic recovery would likely slow in coming months. source: Federal Reserve

Interest Rate in the United States averaged 5.55 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 January of 2021.

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 2022, 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% 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 Officials Pledge to Act to Support US Economy
The Federal Reserve reiterated it was committed to using its full range of tools to support the US economy, as the uncertainty surrounding the economic outlook remained elevated, minutes of the December 15-16 policy meeting showed. Also, policymakers sought to reassure market participants they would get plenty of notice before the asset purchases were curtailed. Fed members agreed that the path of the economy would depend significantly on the course of the virus and that the ongoing public health crisis would continue to weigh on economic activity, employment, and inflation in the near term. In addition, the central bank noted that, with the pandemic worsening across the country, the economic recovery would likely slow in coming months.
2021-01-06
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

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.