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.

Key information about United States Non Performing Loans Ratio

• United States Non Performing Loans Ratio stood at 1.7 % in Dec 2024, compared with the ratio of 1.5 % in the previous quarter
• US Non Performing Loans Ratio data is updated quarterly, available from Mar 1985 to Dec 2024
• The data reached an all-time high of 7.5 % in Mar 2010 and a record low of 1.2 % in Sep 2022

Federal Reserve Board provides quarterly Non Performing Loans Ratio. Delinquent Loans or Non Performing Loans are defined as loans past due of over thirty days and still accruing interest as well as those in nonaccrual status, which also covers lease contracts. [COVID-19-IMPACT]


Further information about United States Non Performing Loans Ratio

• In the latest reports, Money Supply M2 in US increased 3.9 % YoY in Dec 2024
• US Foreign Exchange Reserves was measured at 34.9 USD bn in Dec 2024
• The Foreign Exchange Reserves equaled 0.1 Months of Import in Dec 2024
• The country's Domestic Credit reached 30,648.3 USD bn in Mar 2024, representing an drop of 0.3 % YoY
• Household Debt of US reached 18,036.0 USD bn in Dec 2024, accounting for 61.7 % of the country's Nominal GDP