The Federal Reserve left the fed funds rate steady at a 23-year high of 5.25%-5.5% for a fifth consecutive meeting in March 2024, in line with market expectations. Policymakers still plan to cut interest rates three times this year, similar to the quarterly forecasts in December. The plot also indicated three cuts in 2025, one fewer than in December, and three more reductions in 2026. Meanwhile, US GDP growth is seen higher in 2024 (2.1% vs 1.4% in the December projection), 2025 (2% vs 1.8%) and 2026 (2% vs 1.9%). PCE inflation forecasts were kept unchanged for 2024 (2.4% vs 2.4%) but were raised for 2025 (2.2% vs 2.1%) while the core rate is seen higher this year (2.6% vs 2.4%) while forecasts were left unchanged for 2025 at 2.2%. The unemployment rate is seen lower at 4% in 2024 (vs 4.1%) but projections were kept at 4.1% for next year. 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 March 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 4.00 percent in 2025 and 3.00 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%
2024-03-20 06:00 PM Interest Rate Projection - 2nd Yr 3.1% 3.6%
2024-04-17 06:00 PM Fed Beige Book
2024-05-01 06:00 PM Fed Interest Rate Decision 5.5% 5.5%
2024-05-29 06:00 PM Fed Beige Book


Related Last Previous Unit Reference
Banks Balance Sheet 23356.70 23346.50 USD Billion Mar 2024
Central Bank Balance Sheet 7514348.00 7541969.00 USD Million Mar 2024
Foreign Exchange Reserves 36439.00 37316.00 USD Million Jan 2024
Inflation Rate YoY 3.20 3.10 percent Feb 2024
Fed Interest Rate 5.50 5.50 percent Mar 2024
Loans to Private Sector 2771.38 2762.86 USD Billion Feb 2024
Money Supply M0 5843700.00 5827400.00 USD Million Jan 2024
Money Supply M1 17989.00 18085.50 USD Billion Jan 2024
Money Supply M2 20781.80 20827.20 USD Billion Jan 2024
Repo Rate 5.44 5.44 Mar 2024
Unemployment Rate 3.90 3.70 percent Feb 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 Leaves Rates on Hold, Indicates Three Rate Cuts in 2024
The Federal Reserve left the fed funds rate steady at a 23-year high of 5.25%-5.5% for a fifth consecutive meeting in March 2024, in line with market expectations, but signaled that it still plans three rate cuts before the end of the year. Policymakers added that they do not expect it will be appropriate to reduce the target range until they have gained greater confidence that inflation is moving sustainably toward 2%. Meanwhile, US GDP growth is seen higher in 2024 (2.1% vs 1.4% in the December projection), 2025 (2% vs 1.8%) and 2026 (2% vs 1.9%). PCE inflation forecasts were kept unchanged for 2024 (2.4% vs 2.4%) but were raised for 2025 (2.2% vs 2.1%) while the core rate is seen higher this year (2.6% vs 2.4%) while forecasts were left unchanged for 2025 at 2.2%. The unemployment rate is seen lower at 4% in 2024 (vs 4.1%) but projections were kept at 4.1% for next year.
2024-03-20
Fed to Keep Rates Steady, Give Signals on Rate Cuts
The Federal Reserve is expected to keep the fed funds rate steady at a 23-year high of 5.25%-5.5% for a fifth consecutive meeting in March 2024, as policymakers emphasize the importance of being confident that inflation is on a sustainable path towards 2% before considering any rate adjustments. Policymakers are also set to publish fresh quarterly economic projections, with all eyes on the so-called dot plot for insights into potential interest rate cuts and the timing of such moves. The latest projections in December indicated three quarter-point rate cuts by the end of 2024. Meanwhile, annual inflation in the US unexpectedly edged up to 3.2% in February from 3.1% and the core rate fell less than anticipated to 3.8%, suggesting it is now getting more difficult to push inflation back to the target, with services inflation proved stubborn.
2024-03-20
Fed Is In No Rush to Cut Rates
The fed funds rate is likely at its peak for this tightening cycle and it will likely be appropriate to begin dialing back policy restraint at some point this year, although only when there is greater confidence that inflation is moving sustainably toward 2%, prepared remarks from Fed Chair Powell for his semiannual Monetary Policy Report to the Congress showed. Powell reinforced that the economic outlook is uncertain, and ongoing progress toward the 2% inflation objective is not assured and there are risks of reducing policy restraint either too soon or too late. As a result, the Fed will continue to assess the incoming data, the evolving outlook, and the balance of risks to make any adjustments to the fed funds rate. On the economic front, Powell noted that labor market tightness has eased and inflation has diminished substantially, although it remains above the target.
2024-03-06