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.

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.

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.

Graph and download economic data for Inflation, consumer prices for the United States (FPCPITOTLZGUSA) from 1960 to 2023 about consumer, CPI, inflation, price index, indexes, price, and USA.

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.

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.

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

United States FRB Cleveland Forecast: Inflation Nowcast: Core Consumer Price Index (CPI): YoY data was reported at 2.123 % in Dec 2018. This records a decrease from the previous number of 2.199 % for Nov 2018. United States FRB Cleveland Forecast: Inflation Nowcast: Core Consumer Price Index (CPI): YoY data is updated monthly, averaging 1.861 % from Aug 2013 (Median) to Dec 2018, with 65 observations. The data reached an all-time high of 2.322 % in Aug 2018 and a record low of 1.583 % in Jan 2015. United States FRB Cleveland Forecast: Inflation Nowcast: Core Consumer Price Index (CPI): YoY data remains active status in CEIC and is reported by Federal Reserve Bank of Cleveland. The data is categorized under Global Database’s United States – Table US.I003: Consumer Price Index: Urban: Forecast: Federal Reserve Bank of Cleveland.

United States FRBOP Forecast: Core(CPI) Consumer Price IndexInflation: sa: Median: Plus 4 Qtrs data was reported at 2.400 % in Jun 2018. This records an increase from the previous number of 2.300 % for Mar 2018. United States FRBOP Forecast: Core(CPI) Consumer Price IndexInflation: sa: Median: Plus 4 Qtrs data is updated quarterly, averaging 2.053 % from Mar 2007 (Median) to Jun 2018, with 46 observations. The data reached an all-time high of 2.400 % in Jun 2018 and a record low of 1.500 % in Dec 2009. United States FRBOP Forecast: Core(CPI) Consumer Price IndexInflation: sa: Median: Plus 4 Qtrs data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s USA – Table US.I008: Consumer Price Index: Urban: sa: Forecast: Federal Reserve Bank of Philadelphia.

United States FRBOP: 3Mo TBillsRate over Same-Qtr Core Consumer Price Index (CPI): Median: Plus 1 Qtr data was reported at -0.415 % in Jun 2018. This records an increase from the previous number of -0.496 % for Mar 2018. United States FRBOP: 3Mo TBillsRate over Same-Qtr Core Consumer Price Index (CPI): Median: Plus 1 Qtr data is updated quarterly, averaging -1.458 % from Mar 2007 (Median) to Jun 2018, with 46 observations. The data reached an all-time high of 2.650 % in Jun 2007 and a record low of -2.000 % in Sep 2014. United States FRBOP: 3Mo TBillsRate over Same-Qtr Core Consumer Price Index (CPI): Median: Plus 1 Qtr data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s USA – Table US.M006: Treasury Bills Rates: Forecast: Federal Reserve Bank of Philadelphia.

United States FRBOP Forecast: 3Mo TBills over Next-Qtr Consumer Price Index (CPI): Median: Plus 2 Qtrs data was reported at -0.177 % in Jun 2018. This records an increase from the previous number of -0.407 % for Mar 2018. United States FRBOP Forecast: 3Mo TBills over Next-Qtr Consumer Price Index (CPI): Median: Plus 2 Qtrs data is updated quarterly, averaging 1.475 % from Sep 1981 (Median) to Jun 2018, with 148 observations. The data reached an all-time high of 6.000 % in Sep 1981 and a record low of -2.095 % in Jun 2012. United States FRBOP Forecast: 3Mo TBills over Next-Qtr Consumer Price Index (CPI): Median: Plus 2 Qtrs data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s USA – Table US.M006: Treasury Bills Rates: Forecast: Federal Reserve Bank of Philadelphia.

Inflation Rate in the United States decreased to 2.80 percent in February from 3 percent in January of 2025. This dataset provides - United States Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

FOMC Projection: PCE Inflation: Median: Year 3 (Y3) data was reported at 2.000 % in Dec 2024. This stayed constant from the previous number of 2.000 % for Sep 2024. FOMC Projection: PCE Inflation: Median: Year 3 (Y3) data is updated quarterly, averaging 2.000 % from Sep 2015 (Median) to Dec 2024, with 20 observations. The data reached an all-time high of 2.100 % in Dec 2022 and a record low of 2.000 % in Dec 2024. FOMC Projection: PCE Inflation: 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.I036: PCE Price Index: Summary of Economic Projections: Federal Reserve Board.

United States FRBOP: 3Mo TBills over Same-Qtr(CPI) Consumer Price IndexInflation: Mean: Plus 4 Qtrs data was reported at 0.221 % in Jun 2018. This records an increase from the previous number of -0.061 % for Mar 2018. United States FRBOP: 3Mo TBills over Same-Qtr(CPI) Consumer Price IndexInflation: Mean: Plus 4 Qtrs data is updated quarterly, averaging 1.749 % from Sep 1981 (Median) to Jun 2018, with 148 observations. The data reached an all-time high of 6.227 % in Jun 1982 and a record low of -2.166 % in Dec 2012. United States FRBOP: 3Mo TBills over Same-Qtr(CPI) Consumer Price IndexInflation: Mean: Plus 4 Qtrs data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s USA – Table US.M006: Treasury Bills Rates: Forecast: Federal Reserve Bank of Philadelphia.

United States FRBOP Forecast: 3Mo TBills over Same & Next Qtr(CPI) Consumer Price IndexInflation: Mean data was reported at -0.421 % in Jun 2018. This records an increase from the previous number of -0.789 % for Mar 2018. United States FRBOP Forecast: 3Mo TBills over Same & Next Qtr(CPI) Consumer Price IndexInflation: Mean data is updated quarterly, averaging 1.445 % from Sep 1981 (Median) to Jun 2018, with 148 observations. The data reached an all-time high of 7.625 % in Jun 1982 and a record low of -2.558 % in Jun 2011. United States FRBOP Forecast: 3Mo TBills over Same & Next Qtr(CPI) Consumer Price IndexInflation: Mean data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s USA – Table US.M006: Treasury Bills Rates: Forecast: Federal Reserve Bank of Philadelphia.

FRBOP Forecast: YS: 10Yr TBonds over 3Mo Tbills: Median: Plus 2 Qtrs data was reported at 1.080 % in Jun 2018. This records a decrease from the previous number of 1.150 % for Mar 2018. FRBOP Forecast: YS: 10Yr TBonds over 3Mo Tbills: Median: Plus 2 Qtrs data is updated quarterly, averaging 2.035 % from Mar 1992 (Median) to Jun 2018, with 106 observations. The data reached an all-time high of 3.582 % in Mar 2010 and a record low of -0.175 % in Dec 2000. FRBOP Forecast: YS: 10Yr TBonds over 3Mo Tbills: Median: Plus 2 Qtrs data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s USA – Table US.M006: Treasury Bills Rates: Forecast: Federal Reserve Bank of Philadelphia.

United States FRBOP Forecast: 3Mo TBills over Same-Qtr(GDP) Gross Domestic ProductPI: Median: Plus 4 Qtrs data was reported at 0.638 % in Dec 2018. This records an increase from the previous number of 0.579 % for Sep 2018. United States FRBOP Forecast: 3Mo TBills over Same-Qtr(GDP) Gross Domestic ProductPI: Median: Plus 4 Qtrs data is updated quarterly, averaging 2.017 % from Sep 1981 (Median) to Dec 2018, with 150 observations. The data reached an all-time high of 6.097 % in Jun 1982 and a record low of -1.961 % in Sep 2013. United States FRBOP Forecast: 3Mo TBills over Same-Qtr(GDP) Gross Domestic ProductPI: Median: Plus 4 Qtrs data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s United States – Table US.M006: Treasury Bills Rates: Forecast: Federal Reserve Bank of Philadelphia.

United States FRBOP: Ann YS: 10Y TBonds over 3M TBills: Median: Current Plus 1 Yr data was reported at 0.800 % in Jun 2018. This records a decrease from the previous number of 1.000 % for Mar 2018. United States FRBOP: Ann YS: 10Y TBonds over 3M TBills: Median: Current Plus 1 Yr data is updated quarterly, averaging 1.897 % from Mar 1992 (Median) to Jun 2018, with 106 observations. The data reached an all-time high of 3.500 % in Dec 1992 and a record low of -0.070 % in Dec 2000. United States FRBOP: Ann YS: 10Y TBonds over 3M TBills: Median: Current Plus 1 Yr data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s USA – Table US.M006: Treasury Bills Rates: Forecast: Federal Reserve Bank of Philadelphia.

United States FRBOP: 3Mo TBills over S&N Qtrs Ave Core CPE Infla: Mean: Plus 1Qtr data was reported at -0.081 % in Jun 2018. This records an increase from the previous number of -0.231 % for Mar 2018. United States FRBOP: 3Mo TBills over S&N Qtrs Ave Core CPE Infla: Mean: Plus 1Qtr data is updated quarterly, averaging -1.204 % from Mar 2007 (Median) to Jun 2018, with 46 observations. The data reached an all-time high of 2.918 % in Mar 2007 and a record low of -1.810 % in Sep 2014. United States FRBOP: 3Mo TBills over S&N Qtrs Ave Core CPE Infla: Mean: Plus 1Qtr data remains active status in CEIC and is reported by Federal Reserve Bank of Philadelphia. The data is categorized under Global Database’s USA – Table US.M006: Treasury Bills Rates: Forecast: Federal Reserve Bank of Philadelphia.

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