The Federal Reserve left the target range for its federal funds rate unchanged at 0-0.25% during its first 2021 meeting, in line with forecasts. The QE program was also maintained at $80 billion of Treasuries and $40 billion of Mortgage-Backed Securities. Policymakers noted the pace of the recovery in economic activity and employment has moderated in recent months and that the path of the economy will depend significantly on the course of the virus, including progress on vaccinations. The central bank reiterated it is committed to using its full range of tools to support the US economy in this challenging time. 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 February 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 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
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% 0.25%
2021-02-01 07:00 PM Fed Bostic Speech
2021-02-01 08:10 PM Fed Rosengren Speech
2021-02-02 07:00 PM Fed Mester Speech
2021-02-02 07:00 PM Fed Williams Speech


News Stream
Fed Keeps Rates on Hold
The Federal Reserve left the target range for its federal funds rate unchanged at 0-0.25% during its first 2021 meeting, in line with forecasts. The QE program was also maintained at $80 billion of Treasuries and $40 billion of Mortgage-Backed Securities. Policymakers noted the pace of the recovery in economic activity and employment has moderated in recent months and that the path of the economy will depend significantly on the course of the virus, including progress on vaccinations. The central bank reiterated it is committed to using its full range of tools to support the US economy in this challenging time.
2021-01-27
Fed Expected to Provide Clarity on Tapering
The Federal Reserve is expected to leave monetary policy unchanged when it concludes its two-day meeting Wednesday but investors will be looking for signals if the Fed may consider scaling back its support for financial markets. The QE program is widely expected to be maintained at $80 billion of Treasuries and $40 billion of Mortgage-Backed Securities and the central bank is seen reinforcing it will not pull it back anytime soon. However, more near-term inflation pressures arising from the economic recovery and substantial fiscal stimulus could lead policymakers to tighten their policy early than initially expected. The Fed is also seen renewing its pledge to keep borrowing costs low for as long as necessary and do whatever it can to help the economy recover from the coronavirus-hit. The central bank left the target range for its federal funds rate unchanged at 0-0.25% and its QE programme on hold during its December 2020 meeting, in line with forecasts.
2021-01-27
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

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.