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 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.

United States - Effective Federal Funds Rate was 4.33% in July of 2025, according to the United States Federal Reserve. Historically, United States - Effective Federal Funds Rate reached a record high of 7.03 in July of 2000 and a record low of 0.04 in December of 2011. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Effective Federal Funds Rate - last updated from the United States Federal Reserve on July of 2025.

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

Key information about United States Policy Rate

• United States cash rate (Policy Rate: Month End: Effective Federal Funds Rate) was set at 4.33 % pa in Feb 2025, compared with 4.33 % pa in the previous Jan 2025.
• US Policy Rate averaged 4.33 % pa and is updated monthly, available from Jul 1954 to Feb 2025.
• The data reached an all-time high of 22.00 % pa in Dec 1980 and a record low of 0.04 % pa in Dec 2011.

CEIC calculates the Policy Rate using the last day update of daily series 'Effective Federal Funds Rate (UDLAA)'.


Related information about United States Policy Rate

• In the latest reports, US Short Term Interest Rate: Month End: Treasury Bills: 3 Months was reported at 4.20 % pa in Feb 2025.
• Its Long Term Interest Rate (Treasury Notes Yield: Constant Maturity: Nominal: 10 Years) was reported at 4.45 % pa in Feb 2025.
• Its Real Effective Exchange Rate was 122.45 in Jan 2025.

United States - Effective Federal Funds Rate: 25th Percentile was 4.33% in July of 2025, according to the United States Federal Reserve. Historically, United States - Effective Federal Funds Rate: 25th Percentile reached a record high of 5.33 in March of 2024 and a record low of 0.03 in April of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Effective Federal Funds Rate: 25th Percentile - last updated from the United States Federal Reserve on August of 2025.

Key information about United States Long Term Interest Rate

• United States Treasury Notes Yield: Constant Maturity: Nominal: 10 Years was reported at 4.45 % pa in Feb 2025, compared with 4.63 % pa in the previous month.
• US Long Term Interest Rate data is updated monthly, available from Apr 1953 to Feb 2025.
• The data reached an all-time high of 15.32 % pa in Sep 1981 and a record low of 0.62 % pa in Jul 2020.
• Long Term Interest Rate is reported by reported by Federal Reserve Board.

CEIC calculates monthly Long Term Interest Rate from daily 10 year Treasury Constant Maturity Yield. The Federal Reserve Board provides 10 year Treasury Constant Maturity Yield. Long Term Interest Rate prior to January 1962 is sourced directly from the Federal Reserve Board.


Related information about United States Long Term Interest Rate

• In the latest reports, US Short Term Interest Rate: Month End: Treasury Bills: 3 Months was reported at 4.20 % pa in Feb 2025.
• The cash rate (Policy Rate: Month End: Effective Federal Funds Rate) was set at 4.33 % pa in Feb 2025.

The inflation rate in the United States declined significantly between June 2022 and March 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.

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.

CEIC calculates monthly Short Term Interest Rate from daily Treasury Bills. Federal Reserve Board provides Treasury Bills. Short Term Interest Rate prior to December 1979 is sourced from the Federal Reserve Bank of St. Louis.


Related information about United States Short Term Interest Rate

• 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 - Overnight Bank Funding Rate was 4.33% in July of 2025, according to the United States Federal Reserve. Historically, United States - Overnight Bank Funding Rate reached a record high of 5.33 in March of 2024 and a record low of 0.03 in April of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Overnight Bank Funding Rate - last updated from the United States Federal Reserve on July of 2025.

United States - Overnight Bank Funding Rate: 75th Percentile was 4.33% in July of 2025, according to the United States Federal Reserve. Historically, United States - Overnight Bank Funding Rate: 75th Percentile reached a record high of 5.34 in March of 2024 and a record low of 0.05 in April of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Overnight Bank Funding Rate: 75th Percentile - last updated from the United States Federal Reserve on August of 2025.

Os dados de Taxas de Juros dos Estados Unidos foram registrados em 4.33 % pa em 2025-02. Este manteve-se constante com relação aos números anteriores de 4.33 % pa em 2025-01. Os dados de Taxas de Juros dos Estados Unidos são atualizados por mês, com uma média de 4.33 % pa em 1954-07 até 2025-02, com 848 observações. Os dados alcançaram um alto recorde de 22.00 % pa em 1980-12 e um baixo recorde de 0.04 % pa em 2011-12. Os dados de Taxas de Juros dos Estados Unidos permanecem com status ativo na CEIC e são reportados pela fonte: Federal Reserve Board. Os dados são classificados sob o Global Database’ Estados Unidos – Table US.M001: Federal Funds Rates.

米国の政策金利は、2025-02に4.33 % paを記録しました。前期2025-01の 4.33 % paと比べると横這いの結果となりました。米国の政策金利は月次で更新され、1954-07から2025-02の848つの値で平均は 4.33 % pa。最高値は1980-12の22.00 % pa、最低値は2011-12の0.04 % pa。政策金利はActiveステータスデータであり、Federal Reserve Boardが発表元です。当データは、Global Databaseの米国 – Table US.M001: Federal Funds Ratesに格納されています。