The benchmark interest rate in the United States was last recorded at 4 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.

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 until September 2025, when another cut set the rate at 4.22 percent. In October 2025, the rate was further reduced to 4.09 percent. 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.

Graph and download economic data for Federal Funds Target Range - Upper Limit (DFEDTARU) from 2008-12-16 to 2025-12-01 about federal, interest rate, interest, rate, and USA.

The inflation rate in the United States declined significantly between June 2022 and September 2025, despite rising inflationary pressures towards the end of 2024. The peak inflation rate was recorded in June 2022, at *** percent. In August 2023, the Federal Reserve's interest rate hit its highest level during the observed period, at **** percent, and remained unchanged until September 2024, when the Federal Reserve implemented its first rate cut since September 2021. By September 2025, the rate dropped to **** percent, signaling a shift in monetary policy. What is the Federal Reserve interest rate? The Federal Reserve interest rate, or the federal funds rate, is the rate at which banks and credit unions lend to and borrow from each other. It is one of the Federal Reserve's key tools for maintaining strong employment rates, stable prices, and reasonable interest rates. The rate is determined by the Federal Reserve and adjusted eight times a year, though it can be changed through emergency meetings during times of crisis. The Fed doesn't directly control the interest rate but sets a target rate. It then uses open market operations to influence rates toward this target. Ways of measuring inflation Inflation is typically measured using several methods, with the most common being the Consumer Price Index (CPI). The CPI tracks the price of a fixed basket of goods and services over time, providing a measure of the price changes consumers face. At the end of 2023, the CPI in the United States was ****** percent, up from ****** a year earlier. A more business-focused measure is the producer price index (PPI), which represents the costs of firms.

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.

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

This dataset quantifies hawkish and dovish headline volumes in financial media and maps them to the effective Fed Funds Rate from Jan 2018 to Jul 2025 (Chair Powell’s tenure). Using keyword-filtered, time-stamped headlines as a proxy for tone, it tracks sentiment volume (frequency and dominance of narratives) and overlays those dynamics against realised policy. What it shows Lead–lag behaviour: Dovish surges often precede easing (e.g., 2020 crisis), while hawkish momentum typically builds alongside inflation data into 2022–23 tightening. Narrative regimes: Blue (dovish) vs red (hawkish) bars reveal regime shifts where tone turns before action. Policy alignment: The Fed Funds Rate (black line) anchors sentiment to policy outcomes, clarifying when media tone diverges from guidance. How to use it Early-warning signals: Monitor shifts in sentiment volume as leading indicators of potential Fed pivots. Scenario design: Pair narrative momentum with CPI, labour prints, and term premium for policy path scenarios. Cross-asset testing: Examine lead–lag impacts on equities, USD, gold, and the curve around FOMC windows. Risk controls: Trigger pre-event hedges when narrative pressure materially diverges from the Fed’s stance. 2025 read-through Rising dovish pressure despite a 4.25–4.50% hold, growing internal Fed dispersion, and political noise indicate a widening sentiment–policy gap— historically a precursor to policy inflection.

The median federal funds rate coming from 7 simple policy rules and 3 economic forecasts rises from 2.19 percent in 2018:Q3 to 3.26 percent in 2020:Q3.

United States Effective Federal Funds Rate: Month Average data was reported at 2.199 % pa in Nov 2018. This records an increase from the previous number of 2.188 % pa for Oct 2018. United States Effective Federal Funds Rate: Month Average data is updated monthly, averaging 4.593 % pa from Jul 1954 (Median) to Nov 2018, with 773 observations. The data reached an all-time high of 19.065 % pa in Jul 1981 and a record low of 0.067 % pa in Feb 2014. United States Effective Federal Funds Rate: Month Average data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s United States – Table US.M001: Lending and Effective Federal Funds Rates.

Looking at the federal funds rates coming from 7 simple monetary policy rules and 3 economic forecasts, our researchers find that the median fed funds rate across the policy rules and forecasts rises from 2.33 percent in 2018:Q4 to 3.40 percent in 2020:Q4.

Looking at the federal funds rates coming from 7 simple monetary policy rules and 3 economic forecasts —based on data and forecasts available as of February 21, 2018 – Federal Reserve Bank of Cleveland researchers find that the median federal funds rate across the policy rules and forecasts rises from 1.49 percent in 2018:Q1 to 2.58 percent in 2020:Q1.

The benchmark interest rate in Japan was last recorded at 0.50 percent. This dataset provides - Japan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for Secured Overnight Financing Rate (SOFR) from 2018-04-03 to 2025-12-01 about financing, overnight, securities, rate, and USA.

Graph and download economic data for Interest Rates, Discount Rate for United States (INTDSRUSM193N) from Jan 1950 to Aug 2021 about discount, interest rate, interest, rate, and USA.

Key information about United States Short Term Interest Rate

• United States Short Term Interest Rate: Month End: Treasury Bills: 3 Months was reported at 4.20 % pa in Feb 2025, compared with 4.20 % pa in the previous month.
• US Short Term Interest Rate data is updated monthly, available from Jan 1954 to Feb 2025.
• The data reached an all-time high of 15.52 % pa in Aug 1981 and a record low of -0.01 % pa in Sep 2015.
• Short Term Interest Rate is reported by reported by Federal Reserve Board.

• In the latest reports, US Treasury Notes Yield: Constant Maturity: Nominal: 10 Years was reported at 4.45 % pa in Feb 2025.
• The cash rate (Policy Rate: Month End: Effective Federal Funds Rate) was set at 4.33 % pa in Feb 2025.

United States FOMC Projection: Federal Funds Rate: Median: Year 3 (Y3) data was reported at 3.100 % in Mar 2025. This stayed constant from the previous number of 3.100 % for Dec 2024. United States FOMC Projection: Federal Funds Rate: Median: Year 3 (Y3) data is updated quarterly, averaging 2.900 % from Sep 2015 (Median) to Mar 2025, with 21 observations. The data reached an all-time high of 3.400 % in Sep 2018 and a record low of 0.100 % in Dec 2020. United States FOMC Projection: Federal Funds Rate: Median: Year 3 (Y3) data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s United States – Table US.M005: Federal Funds Rates: Summary of Economic Projections: Federal Reserve Board.

United States - Interest Rate on Required Reserves (DISCONTINUED) was 0.15% in July of 2021, according to the United States Federal Reserve. Historically, United States - Interest Rate on Required Reserves (DISCONTINUED) reached a record high of 2.40 in December of 2018 and a record low of 0.10 in March of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Interest Rate on Required Reserves (DISCONTINUED) - last updated from the United States Federal Reserve on November of 2025.

Graph and download economic data for Bank Prime Loan Rate Changes: Historical Dates of Changes and Rates (PRIME) from 1955-08-04 to 2025-10-30 about prime, loans, interest rate, banks, depository institutions, interest, rate, and USA.

The benchmark interest rate in Turkey was last recorded at 39.50 percent. This dataset provides the latest reported value for - Turkey Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

This paper studies the effects of Federal Open Market Committee (FOMC) forward guidance language. I estimate two policy surprises at FOMC meetings: a change in the current federal funds rate and an orthogonal change in the expected path of the federal funds rate. From February 2000 to June 2003, the FOMC only gave forward guidance about risks to the economic outlook, and a surprise increase in the expected federal funds rate path had expansionary effects. This is consistent with models of central bank information effects, where a positive economic outlook causes private agents to revise up their expectations for the economy. From August 2003 to May 2006, the FOMC also gave forward guidance about policy inclinations, and a surprise increase in the federal funds rate path had contractionary effects. These results are consistent with standard macroeconomic models of forward guidance. Overall, the effects of forward guidance depend on the FOMC’s choice to use one or both of the economic-outlook and policy-inclination aspects of forward guidance.