Graph and download economic data for Federal Funds Target Range - Upper Limit (DFEDTARU) from 2008-12-16 to 2025-07-12 about federal, interest rate, interest, rate, and USA.

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.

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.

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

United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, Midpoint was 3.25% in January of 2027, according to the United States Federal Reserve. Historically, United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, Midpoint reached a record high of 5.40 in January of 2023 and a record low of 0.10 in January of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, Midpoint - last updated from the United States Federal Reserve on July of 2025.

The inflation rate in the United States declined significantly between June 2022 and May 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 January 2025, the rate dropped to **** 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 ****** percent, up from ****** a year earlier. A more business-focused measure is the producer price index (PPI), which represents the costs of firms.

Effective Federal Funds Rate in the United States remained unchanged at 4.33 percent on Wednesday July 2. This dataset includes a chart with historical data for the United States Effective Federal Funds Rate.

United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, Low was 2.50% in March of 2025, according to the United States Federal Reserve. Historically, United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, Low reached a record high of 3.30 in June of 2015 and a record low of 2.00 in September of 2019. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, Low - last updated from the United States Federal Reserve on June of 2025.

Policy interest rates in the U.S. and Europe are forecasted to decrease gradually between 2024 and 2027, following exceptional increases triggered by soaring inflation between 2021 and 2023. The U.S. federal funds rate stood at **** percent at the end of 2023, the European Central Bank deposit rate at **** percent, and the Swiss National Bank policy rate at **** percent. With inflationary pressures stabilizing, policy interest rates are forecast to decrease in each observed region. The U.S. federal funds rate is expected to decrease to *** percent, the ECB refi rate to **** percent, the Bank of England bank rate to **** percent, and the Swiss National Bank policy rate to **** percent by 2025. An interesting aspect to note is the impact of these interest rate changes on various economic factors such as growth, employment, and inflation. The impact of central bank policy rates The U.S. federal funds effective rate, crucial in determining the interest rate paid by depository institutions, experienced drastic changes in response to the COVID-19 pandemic. The subsequent slight changes in the effective rate reflected the efforts to stimulate the economy and manage economic factors such as inflation. Such fluctuations in the federal funds rate have had a significant impact on the overall economy. The European Central Bank's decision to cut its fixed interest rate in June 2024 for the first time since 2016 marked a significant shift in attitude towards economic conditions. The reasons behind the fluctuations in the ECB's interest rate reflect its mandate to ensure price stability and manage inflation, shedding light on the complex interplay between interest rates and economic factors. Inflation and real interest rates The relationship between inflation and interest rates is critical in understanding the actions of central banks. Central banks' efforts to manage inflation through interest rate adjustments reveal the intricate balance between economic growth and inflation. Additionally, the concept of real interest rates, adjusted for inflation, provides valuable insights into the impact of inflation on the economy.

United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, Midpoint was 3.20% in March of 2025, according to the United States Federal Reserve. Historically, United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, Midpoint reached a record high of 3.80 in June of 2015 and a record low of 2.50 in June of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, Midpoint - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for 1-Year Treasury Constant Maturity Minus Federal Funds Rate (T1YFF) from 1962-01-02 to 2025-07-10 about yield curve, 1-year, spread, maturity, Treasury, federal, interest rate, interest, rate, and USA.

Graph and download economic data for 3-Month Treasury Constant Maturity Minus Federal Funds Rate (T3MFF) from 1982-01-04 to 2025-07-10 about yield curve, spread, 3-month, maturity, Treasury, federal, interest rate, interest, rate, and USA.

Graph and download economic data for Effective Federal Funds Rate: 75th Percentile (EFFR75) from 2016-03-01 to 2025-07-10 about percentile, federal, rate, and USA.

United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, Low was 2.90% in January of 2027, according to the United States Federal Reserve. Historically, United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, Low reached a record high of 5.40 in January of 2023 and a record low of 0.10 in January of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, Low - last updated from the United States Federal Reserve on July of 2025.

In May 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In early 2025, Russia maintained the highest interest rate at 20 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.1 percent in May 2025. In contrast, Russia maintained a high inflation rate of 9.9 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

Graph and download economic data for Effective Federal Funds Rate: 1st Percentile (EFFR1) from 2016-03-01 to 2025-07-10 about percentile, federal, rate, and USA.

United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, High was 3.90% in March of 2025, according to the United States Federal Reserve. Historically, United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, High reached a record high of 4.30 in June of 2015 and a record low of 3.00 in December of 2017. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Longer Run FOMC Summary of Economic Projections for the Fed Funds Rate, Range, High - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for 6-Month Treasury Constant Maturity Minus Federal Funds Rate (T6MFF) from 1982-01-04 to 2025-07-10 about 6-month, yield curve, spread, maturity, Treasury, federal, interest rate, interest, rate, and USA.

United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, High was 3.60% in January of 2027, according to the United States Federal Reserve. Historically, United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, High reached a record high of 5.40 in January of 2023 and a record low of 0.10 in January of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, High - last updated from the United States Federal Reserve on June of 2025.

Graph and download economic data for 10-Year Treasury Constant Maturity Minus Federal Funds Rate (T10YFF) from 1962-01-02 to 2025-07-10 about yield curve, spread, 10-year, maturity, Treasury, federal, interest rate, interest, rate, and USA.