Federal Reserve Chairman Jerome Powell gave clear signals that the central bank will cut its interest rate in the September meeting during his speech at the Jackson Hole Economic Symposium. The Chairman noted that the US labor market is cooling quickly following the softer jobs report from July and the downward revision to payrolls this week. Powell also noted that the FOMC has gained further confidence that inflation is slowing to the central bank’s 2% target, warranting a clear view that it is time to adjust monetary policy to less restrictive conditions. The speech followed minutes from the Federal Reserve's last meeting, which suggested that most policymakers agree that it will be appropriate to lower the Federal funds rate this quarter. 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 20.00 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 September 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 5.00 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 3.50 percent in 2025 and 3.25 percent in 2026, according to our econometric models.
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 Chairman Powell Clearly Signals Rate Cut in September
Federal Reserve Chairman Jerome Powell gave clear signals that the central bank will cut its interest rate in the September meeting during his speech at the Jackson Hole Economic Symposium. The Chairman noted that the US labor market is cooling quickly following the softer jobs report from July and the downward revision to payrolls this week. Powell also noted that the FOMC has gained further confidence that inflation is slowing to the central bank’s 2% target, warranting a clear view that it is time to adjust monetary policy to less restrictive conditions. The speech followed minutes from the Federal Reserve's last meeting, which suggested that most policymakers agree that it will be appropriate to lower the Federal funds rate this quarter.
2024-08-23
Fed Inches Toward Rate Cut
At their July meeting, Federal Reserve officials approached the possibility of reducing interest rates but ultimately decided to wait, signaling that a cut in September seemed increasingly likely. The minutes from the meeting indicated that if economic data continued to align with expectations, it would probably be appropriate to ease monetary policy then. While all members voted to maintain the current rate range of 5.25%-5.5%, some officials leaned towards cutting rates during the July meeting due to recent improvements in inflation and a rise in unemployment. They noted that inflation was trending towards the Fed’s 2% target, but also raised concerns about the accuracy of payroll gains and risks to the labor market. Despite market reactions and a subsequent spike in unemployment claims, further data showed inflation pressures easing and retail sales performing better than expected. Consequently, traders anticipate a rate cut in September as economic conditions continue to evolve.
2024-08-21
Fed Leaves Rates on Hold but Signals Progress on Inflation
The Federal Reserve maintained the federal funds rate at a 23-year high of 5.25%-5.50% for the 8th consecutive meeting in July 2024, in line with expectations. Policymakers noted that there has been some further progress toward the 2% inflation goal although it remains somewhat elevated. Also, recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have moderated, and the unemployment rate has moved up but remains low. The central bank judges that the risks to achieving its employment and inflation goals continue to move into better balance. Still, the Fed does not expect it will be appropriate to reduce rates until it has gained greater confidence that inflation is moving sustainably toward 2%. During the regular press conference, Chair Powell said a September cut could be on the table if inflation moves down in line with expectations and that he could imagine scenarios in which the Fed could cut rates several times this year or not at all.
2024-07-31
