View data of the Effective Federal Funds Rate, or the interest rate depository institutions charge each other for overnight loans of funds.

The benchmark interest rate in the United States was last recorded at 4.50 percent. This dataset 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.

Graph and download economic data for Federal Funds Target Range - Upper Limit (DFEDTARU) from 2008-12-16 to 2025-07-31 about federal, interest rate, interest, rate, and USA.

The U.S. federal funds effective rate underwent a dramatic reduction in early 2020 in response to the COVID-19 pandemic. The rate plummeted from 1.58 percent in February 2020 to 0.65 percent in March, and further decreased to 0.05 percent in April. This sharp reduction, accompanied by the Federal Reserve's quantitative easing program, was implemented to stabilize the economy during the global health crisis. After maintaining historically low rates for nearly two years, the Federal Reserve began a series of rate hikes in early 2022, with the rate moving from 0.33 percent in April 2022 to 5.33 percent in August 2023. The rate remained unchanged for over a year, before the Federal Reserve initiated its first rate cut in nearly three years in September 2024, bringing the rate to 5.13 percent. By December 2024, the rate was cut to 4.48 percent, signaling a shift in monetary policy in the second half of 2024. In January 2025, the Federal Reserve implemented another cut, setting the rate at 4.33 percent, which remained unchanged throughout the following months. What is the federal funds effective rate? The U.S. federal funds effective rate determines the interest rate paid by depository institutions, such as banks and credit unions, that lend reserve balances to other depository institutions overnight. Changing the effective rate in times of crisis is a common way to stimulate the economy, as it has a significant impact on the whole economy, such as economic growth, employment, and inflation. Central bank policy rates The adjustment of interest rates in response to the COVID-19 pandemic was a coordinated global effort. In early 2020, central banks worldwide implemented aggressive monetary easing policies to combat the economic crisis. The U.S. Federal Reserve's dramatic reduction of its federal funds rate - from 1.58 percent in February 2020 to 0.05 percent by April - mirrored similar actions taken by central banks globally. While these low rates remained in place throughout 2021, mounting inflationary pressures led to a synchronized tightening cycle beginning in 2022, with central banks pushing rates to multi-year highs. By mid-2024, as inflation moderated across major economies, central banks began implementing their first rate cuts in several years, with the U.S. Federal Reserve, Bank of England, and European Central Bank all easing monetary policy.

Effective Federal Funds Rate in the United States remained unchanged at 4.33 percent on Tuesday July 29. This dataset includes a chart with historical data for the United States Effective Federal Funds Rate.

The U.S. federal funds rate peaked in 2023 at its highest level since the 2007-08 financial crisis, reaching 5.33 percent by December 2023. A significant shift in monetary policy occurred in the second half of 2024, with the Federal Reserve implementing regular rate cuts. By December 2024, the rate had declined to 4.48 percent. What is a central bank rate? The federal funds rate determines the cost of overnight borrowing between banks, allowing them to maintain necessary cash reserves and ensure financial system liquidity. When this rate rises, banks become more inclined to hold rather than lend money, reducing the money supply. While this decreased lending slows economic activity, it helps control inflation by limiting the circulation of money in the economy. Historic perspective The federal funds rate historically follows cyclical patterns, falling during recessions and gradually rising during economic recoveries. Some central banks, notably the European Central Bank, went beyond traditional monetary policy by implementing both aggressive asset purchases and negative interest rates.

Graph and download economic data for FOMC Summary of Economic Projections for the Fed Funds Rate, Median (FEDTARMD) from 2025 to 2027 about projection, federal, median, rate, and USA.

Graph and download economic data for Secured Overnight Financing Rate (SOFR) from 2018-04-03 to 2025-07-30 about financing, overnight, securities, rate, and USA.

Graph and download economic data for Effective Federal Funds Volume (EFFRVOL) from 2016-03-01 to 2025-07-30 about federal and USA.

United States - Defined Benefit and Defined Contribution Pension Plans: Effect of participation in defined benefit and defined contribution pension plans on personal income, saving, and wealth: Effect on personal income was 1336.01400 Bil. of $ in January of 2023, according to the United States Federal Reserve. Historically, United States - Defined Benefit and Defined Contribution Pension Plans: Effect of participation in defined benefit and defined contribution pension plans on personal income, saving, and wealth: Effect on personal income reached a record high of 1336.01400 in January of 2023 and a record low of 287.84400 in January of 1984. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Defined Benefit and Defined Contribution Pension Plans: Effect of participation in defined benefit and defined contribution pension plans on personal income, saving, and wealth: Effect on personal income - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for 10-Year Treasury Constant Maturity Minus Federal Funds Rate (T10YFF) from 1962-01-02 to 2025-07-31 about yield curve, spread, 10-year, maturity, Treasury, federal, interest rate, interest, rate, and USA.

Graph and download economic data for Interest Rate on Reserve Balances (IORB Rate) (IORB) from 2021-07-29 to 2025-07-28 about reserves, interest rate, interest, rate, and USA.

United States - Defined Contribution Pension Plans: Effect of participation in defined contribution plans on personal income, saving, and wealth: Holding gains and other changes in assets was 1395.06700 Bil. of $ in January of 2023, according to the United States Federal Reserve. Historically, United States - Defined Contribution Pension Plans: Effect of participation in defined contribution plans on personal income, saving, and wealth: Holding gains and other changes in assets reached a record high of 1395.06700 in January of 2023 and a record low of -1790.96700 in January of 2022. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Defined Contribution Pension Plans: Effect of participation in defined contribution plans on personal income, saving, and wealth: Holding gains and other changes in assets - last updated from the United States Federal Reserve on August of 2025.

The Volcker Shock was a period of historically high interest rates precipitated by Federal Reserve Chairperson Paul Volcker's decision to raise the central bank's key interest rate, the Fed funds effective rate, during the first three years of his term. Volcker was appointed chairperson of the Fed in August 1979 by President Jimmy Carter, as replacement for William Miller, who Carter had made his treasury secretary. Volcker was one of the most hawkish (supportive of tighter monetary policy to stem inflation) members of the Federal Reserve's committee, and quickly set about changing the course of monetary policy in the U.S. in order to quell inflation. The Volcker Shock is remembered for bringing an end to over a decade of high inflation in the United States, prompting a deep recession and high unemployment, and for spurring on debt defaults among developing countries in Latin America who had borrowed in U.S. dollars.

Monetary tightening and the recessions of the early '80s

Beginning in October 1979, Volcker's Fed tightened monetary policy by raising interest rates. This decision had the effect of depressing demand and slowing down the U.S. economy, as credit became more expensive for households and businesses. The Fed funds rate, the key overnight rate at which banks lend their excess reserves to each other, rose as high as 17.6 percent in early 1980. The rate was allowed to fall back below 10 percent following this first peak, however, due to worries that inflation was not falling fast enough, a second cycle of monetary tightening was embarked upon starting in August of 1980. The rate would reach its all-time peak in June of 1981, at 19.1 percent. The second recession sparked by these hikes was far deeper than the 1980 recession, with unemployment peaking at 10.8 percent in December 1980, the highest level since The Great Depression. This recession would drive inflation to a low point during Volcker's terms of 2.5 percent in August 1983.

The legacy of the Volcker Shock

By the end of Volcker's terms as Fed Chair, inflation was at a manageable rate of around four percent, while unemployment had fallen under six percent, as the economy grew and business confidence returned. While supporters of Volcker's actions point to these numbers as proof of the efficacy of his actions, critics have claimed that there were less harmful ways that inflation could have been brought under control. The recessions of the early 1980s are cited as accelerating deindustrialization in the U.S., as manufacturing jobs lost in 'rust belt' states such as Michigan, Ohio, and Pennsylvania never returned during the years of recovery. The Volcker Shock was also a driving factor behind the Latin American debt crises of the 1980s, as governments in the region defaulted on debts which they had incurred in U.S. dollars. Debates about the validity of using interest rate hikes to get inflation under control have recently re-emerged due to the inflationary pressures facing the U.S. following the Coronavirus pandemic and the Federal Reserve's subsequent decision to embark on a course of monetary tightening.

Graph and download economic data for Federal Funds Target Range - Lower Limit (DFEDTARL) from 2008-12-16 to 2025-07-28 about federal, interest rate, interest, rate, and USA.

United States - Defined Contribution Pension Plans: Effect of participation in defined contribution plans on personal saving was 480.68500 Bil. of $ in January of 2023, according to the United States Federal Reserve. Historically, United States - Defined Contribution Pension Plans: Effect of participation in defined contribution plans on personal saving reached a record high of 480.68500 in January of 2023 and a record low of 36.88900 in January of 1984. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Defined Contribution Pension Plans: Effect of participation in defined contribution plans on personal saving - last updated from the United States Federal Reserve on August of 2025.

According to industry reports, the direct economic effect of the placement of Dynamite by BTS on the first place of the Billboard charts in 2020 is estimated to amount to around 617.4 billion South Korean won. While the sales of Dynamite are estimated to reach around 245.7 billion won, exports of related goods are expected to reach around 371.7 billion won. The music video for this song broke the record as the music video with the most YouTube views within the first 24 hours after release. The total economic effect of the placement of Dynamite on the first place of the Billboard charts is estimated to reach around 1.71 trillion South Korean won.

United States - Federal Government Defined Benefit Pension Plans: Effect of participation in defined benefit plans on personal income, saving, and wealth: Benefit payments and withdrawals was 186.03100 Bil. of $ in January of 2023, according to the United States Federal Reserve. Historically, United States - Federal Government Defined Benefit Pension Plans: Effect of participation in defined benefit plans on personal income, saving, and wealth: Benefit payments and withdrawals reached a record high of 186.03100 in January of 2023 and a record low of 0.05600 in January of 1929. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Federal Government Defined Benefit Pension Plans: Effect of participation in defined benefit plans on personal income, saving, and wealth: Benefit payments and withdrawals - last updated from the United States Federal Reserve on July of 2025.

In the United States, interest rates for all mortgage types started to increase in 2021. This was due to the Federal Reserve introducing a series of hikes in the federal funds rate to contain the rising inflation. In the fourth quarter of 2024, the 30-year fixed rate rose slightly, to **** percent. Despite the increase, the rate remained below the peak of **** percent in the same quarter a year ago. Why have U.S. home sales decreased? Cheaper mortgages normally encourage consumers to buy homes, while higher borrowing costs have the opposite effect. As interest rates increased in 2022, the number of existing homes sold plummeted. Soaring house prices over the past 10 years have further affected housing affordability. Between 2013 and 2023, the median price of an existing single-family home risen by about ** percent. On the other hand, the median weekly earnings have risen much slower. Comparing mortgage terms and rates Between 2008 and 2023, the average rate on a 15-year fixed-rate mortgage in the United States stood between **** and **** percent. Over the same period, a 30-year mortgage term averaged a fixed-rate of between **** and **** percent. Rates on 15-year loan terms are lower to encourage a quicker repayment, which helps to improve a homeowner’s equity.

United States - State and Local Government Defined Benefit Pension Plans: Effect of participation in defined benefit plans on personal income, saving, and wealth: Implied funding of benefits from holding gains on assets was 157.45200 Bil. of $ in January of 2023, according to the United States Federal Reserve. Historically, United States - State and Local Government Defined Benefit Pension Plans: Effect of participation in defined benefit plans on personal income, saving, and wealth: Implied funding of benefits from holding gains on assets reached a record high of 182.02500 in January of 2022 and a record low of -8.72500 in January of 1989. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - State and Local Government Defined Benefit Pension Plans: Effect of participation in defined benefit plans on personal income, saving, and wealth: Implied funding of benefits from holding gains on assets - last updated from the United States Federal Reserve on July of 2025.