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. The first rate cut in 2025 then set the rate at 4.33 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.

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 Federal Funds Target Range - Upper Limit (DFEDTARU) from 2008-12-16 to 2025-03-26 about federal, interest rate, interest, rate, and USA.

The inflation rate in the United States declined significantly between June 2022 and January 2025, despite rising inflationary pressures towards the end of 2024. The peak inflation rate was recorded in June 2022, at 9.1 percent. In August 2023, the Federal Reserve's interest rate hit its highest level during the observed period, at 5.33 percent, and remained unchanged until September 2024, when the Federal Reserve implemented its first rate cut since September 2021. By January 2025, the rate dropped to 4.33 percent, signalling 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 158.11 percent, up from 153.12 a year earlier. A more business-focused measure is the producer price index (PPI), which represents the costs of firms.

This data package includes the underlying data, programs, documentation, and background notes for Another reason to raise the Fed’s inflation target: An employment and output boom, PIIE Policy Brief 21-19.

If you use the data, please cite as: Reifschneider, David, and David Wilcox, Another reason to raise the Fed’s inflation target: An employment and output boom, PIIE Policy Brief 21-19, August 2021, Peterson Institute for International Economics.

A survey from Q3 2022 suggest concerns among the majority of the United States banking industry about the rising Federal Reserve interest rates. 58 percent of the respondents worried that the Fed would overcorrect for inflation by raising the rates too fast and too high. In contrast, 10 percent of the respondents were concerned about not raising the rates fast enough. In terms of the timeline, the majority of the respondents expected that the Fed would hit its peak rate in the first half of 2023. Most respondents believed that the peak rate would be between 4.5 and 7.75 percent. As of December 2022, the Federal Funds Effective Rate was 4.1 percent.

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.

View the total value of the assets of all Federal Reserve Banks as reported in the weekly balance sheet.

Graph and download economic data for 10-Year Real Interest Rate (REAINTRATREARAT10Y) from Jan 1982 to Mar 2025 about 10-year, interest rate, interest, real, rate, and USA.

Dallas Fed Manufacturing New Orders Index in the United States decreased to -3.50 points in February from 7.70 points in January of 2025. This dataset includes a chart with historical data for the United States Dallas Fed Manufacturing New Orders Index.

Richmond Fed Manufacturing Shipments in the United States decreased to -7 points in March from 12 points in February of 2025. This dataset includes a chart with historical data for the United States Richmond Fed Manufacturing Shipments.

Kansas Fed Employment Index in the United States decreased to -14 points in February from 1 points in January of 2025. This dataset includes a chart with historical data for the United States Kansas Fed Employment Index.

The Federal Reserve's balance sheet has undergone significant changes since 2007, reflecting its response to major economic crises. From a modest 0.9 trillion U.S. dollars at the end of 2007, it ballooned to approximately 6.76 trillion U.S. dollars by March 2025. This dramatic expansion, particularly during the 2008 financial crisis and the COVID-19 pandemic - both of which resulted in negative annual GDP growth in the U.S. - showcases the Fed's crucial role in stabilizing the economy through expansionary monetary policies. Impact on inflation and interest rates The Fed's expansionary measures, while aimed at stimulating economic growth, have had notable effects on inflation and interest rates. Following the quantitative easing in 2020, inflation in the United States reached eight percent in 2022, the highest since 1991. However, by November 2024, inflation had declined to 2.7 percent. Concurrently, the Federal Reserve implemented a series of interest rate hikes, with the rate peaking at 5.33 percent in August 2023, before the first rate cut since September 2021 occurred in September 2024. Financial implications for the Federal Reserve The expansion of the Fed's balance sheet and subsequent interest rate hikes have had significant financial implications. In 2023, the Fed reported a negative net income of 114.3 billion U.S. dollars, a stark contrast to the 58.84 billion U.S. dollars profit in 2022. This unprecedented shift was primarily due to rapidly rising interest rates, which caused the Fed's interest expenses to soar to over 281 billion U.S. dollars in 2023. Despite this, the Fed's net interest income on securities acquired through open market operations reached a record high of 174.53 billion U.S. dollars in the same year.

Celsius Holdings' stock increased by 5.7% as the Fed maintained interest rates, signaling potential rate cuts amidst economic uncertainty. The company recently expanded by acquiring Alani Nu.

Philly Fed Prices Paid in the United States increased to 48.30 points in March from 40.50 points in February of 2025. This dataset includes a chart with historical data for the United States Philly Fed Prices Paid.

From 2003 to 2025, the central banks of the United States, United Kingdom, and European Union exhibited remarkably similar interest rate patterns, reflecting shared global economic conditions. In the early 2000s, rates were initially low to stimulate growth, then increased as economies showed signs of overheating prior to 2008. The financial crisis that year prompted sharp rate cuts to near-zero levels, which persisted for an extended period to support economic recovery. The COVID-19 pandemic in 2020 led to further rate reductions to historic lows, aiming to mitigate economic fallout. However, surging inflation in 2022 triggered a dramatic policy shift, with the Federal Reserve, Bank of England, and European Central Bank significantly raising rates to curb price pressures. As inflation stabilized in late 2023 and early 2024, the ECB and Bank of England initiated rate cuts by mid-2024, and the Federal Reserve also implemented its first cut in three years, with forecasts suggesting a gradual decrease in all major interest rates between 2025 and 2026. Divergent approaches within the European Union While the ECB sets a benchmark rate for the Eurozone, individual EU countries have adopted diverse strategies to address their unique economic circumstances. For instance, Hungary set the highest rate in the EU at 13 percent in September 2023, gradually reducing it to 6.5 percent by October 2024. In contrast, Sweden implemented more aggressive cuts, lowering its rate to 2.25 percent by February 2025, the lowest among EU members. These variations highlight the complex economic landscape that European central banks must navigate, balancing inflation control with economic growth support. Global context and future outlook The interest rate changes in major economies have had far-reaching effects on global financial markets. Government bond yields, for example, reflect these policy shifts and investor sentiment. As of June 2024, the United States had the highest 10-year government bond yield among developed economies at 4.09 percent, while Switzerland had the lowest at 0.69 percent. These rates serve as important benchmarks for borrowing costs and economic expectations worldwide.

Housing Inventory: Price Increased Count Year-Over-Year in Port St. Lucie, FL (CBSA) was 15.38% in April of 2025, according to the United States Federal Reserve. Historically, Housing Inventory: Price Increased Count Year-Over-Year in Port St. Lucie, FL (CBSA) reached a record high of 222.58 in April of 2021 and a record low of -72.09 in July of 2023. Trading Economics provides the current actual value, an historical data chart and related indicators for Housing Inventory: Price Increased Count Year-Over-Year in Port St. Lucie, FL (CBSA) - last updated from the United States Federal Reserve on May of 2025.

Dairy cattle are often raised in environments that lack natural feeding opportunities and perform abnormal repetitive behaviors (ARBs) as a result. Early life restriction can affect later life behavior. We evaluated whether access to hay in the milk-fed period would affect later-life behavior in heifers experiencing short-term feed restriction, and whether individuals were consistent in behavioral expression over time. We had 2 competing ideas about how this would unfold. First, being raised with hay, which reduced early life ARBs, could lead to fewer ARBs later in life. Alternatively, heifers that were raised without hay and performed more ARBs in early life may be more prepared for a later feed-restricted environment and could engage in fewer ARBs than those raised with hay. We studied 24 pair-housed Holstein heifers. As calves, they were fed milk and grain from 0-7 wk of age (Control) or given additional forage (Hay). Tongue rolling, tongue flicking, nonnutritive oral manipulation (NNOM) of pen fixtures, self-grooming, and drinking water were recorded for 12 h (08:00-20:00) during wk 4 and 6 of life using 1-0 sampling at 5-s intervals. At the start of weaning at d 50, all calves were fed TMR. At d 60, all calves were fully weaned, and socially housed by d 65-70. After this point, all individuals were raised the same way, according to farm protocol, in groups that included both treatments. At 12.4 ± 0.6 mo of age (mean ± SD), heifers were restricted to 50% of their ad-libitum TMR intake for 2 d as part of a short-term feed challenge. Using continuous video recording from 08:00-20:00 on the 2nd d of feed restriction, we scored time spent performing oral behaviors: the 5 previously scored as calves, and intersucking, allogrooming, drinking urine, and NNOM of rice hull bedding and feed bins, specifically. We found that early life access to hay did not affect behavior performed by feed-restricted heifers 1 yr later. Most heifers performed a wide variety of behaviors that appeared abnormal. All heifers performed tongue rolling and NNOM, and at higher levels then when they were calves, while tongue flicks and self-grooming were performed less by heifers. Individual performance of NNOM and tongue rolling were not related across age classes (r = 0.17, 0.11, respectively), but tongue flicks tended to be correlated (r = 0.37). Intersucking was recorded in 67% of heifers, despite not being able to suckle a conspecific or dam in early life. Oral behaviors were highly variable across heifers, particularly tongue rolling and intersucking. Outliers, or extreme performance of oral behaviors relative to the rest of the population, were present in many behaviors. Most outliers were expressed by unique heifers that were not extreme in other categories. Overall, feeding calves hay during the milk-fed period did not affect later life performance of oral behaviors. The considerable variability, inconsistency across ages, and excessive performance of some behaviors raises additional questions about how these develop in cattle across life stages, and what we label "abnormal." The methods are described in the associated research publication. Please see the README file for these details.

Housing Inventory: Price Increased Count Month-Over-Month in Dubuque, IA (CBSA) was -100.00% in February of 2025, according to the United States Federal Reserve. Historically, Housing Inventory: Price Increased Count Month-Over-Month in Dubuque, IA (CBSA) reached a record high of 1.00 in March of 2019 and a record low of -100.00 in October of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for Housing Inventory: Price Increased Count Month-Over-Month in Dubuque, IA (CBSA) - last updated from the United States Federal Reserve on June of 2025.

Graph and download economic data for 51) Over the Past Three Months, How Has the Duration and Persistence of Mark and Collateral Disputes Relating to Contracts of Each of the Following Types Changed?| B. Interest Rate. | Answer Type: Increased Somewhat (OTCDQ51BISNR) from Q4 2011 to Q4 2024 about duration, contracts, collateral, change, 3-month, interest rate, interest, rate, and USA.