The benchmark interest rate in the United States was last recorded at 4.25 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, High (FEDTARRH) from 2025 to 2028 about projection, federal, rate, and USA.

View monthly updates and historical trends for Effective Federal Funds Rate. from United States. Source: Federal Reserve. Track economic data with YCharts…

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. 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 - FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, Midpoint was 3.20% in January of 2028, 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 October of 2025.

United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Median was 3.10% in January of 2028, according to the United States Federal Reserve. Historically, United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Median 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, Median - last updated from the United States Federal Reserve on October of 2025.

United States CBO Projection: Effective Federal Funds Rate: Annual data was reported at 3.108 % in 2029. This records an increase from the previous number of 3.084 % for 2028. United States CBO Projection: Effective Federal Funds Rate: Annual data is updated yearly, averaging 3.059 % from Dec 2017 (Median) to 2029, with 13 observations. The data reached an all-time high of 3.441 % in 2021 and a record low of 1.003 % in 2017. United States CBO Projection: Effective Federal Funds Rate: Annual data remains active status in CEIC and is reported by Congressional Budget Office. The data is categorized under Global Database’s United States – Table US.M002: Federal Funds Rates: Projection.

The 'Interest Rate Projection - Current' in the USA refers to the Federal Reserve's forecast of future interest rates, typically presented in the form of the 'dot plot' during FOMC meetings.

View yearly updates and historical trends for Summary of Economic Projections: Federal Funds Rate. from United States. Source: Federal Reserve. Track econ…

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.

The 'Interest Rate Projection - 1st Yr' in the USA refers to the Federal Reserve's forecast of interest rates for the upcoming year.

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 - 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 October of 2025.

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 September of 2025.

The 'Interest Rate Projection - 3rd Yr' in the USA refers to the forecasted interest rates for three years into the future, typically provided by the Federal Reserve.

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 October of 2025.

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 September of 2025.

United States CBO Projection: Federal Debt Held by Public: Average Interest Rate data was reported at 3.448 % in 2028. This records an increase from the previous number of 3.442 % for 2027. United States CBO Projection: Federal Debt Held by Public: Average Interest Rate data is updated yearly, averaging 3.289 % from Sep 2014 (Median) to 2028, with 15 observations. The data reached an all-time high of 3.531 % in 2023 and a record low of 1.654 % in 2015. United States CBO Projection: Federal Debt Held by Public: Average Interest Rate data remains active status in CEIC and is reported by Congressional Budget Office. The data is categorized under Global Database’s USA – Table US.F006: Federal Debt: Projection: Congressional Budget Office.

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.

The 'Interest Rate Projection - 2nd Yr' in the USA refers to the anticipated path of interest rates over the next two years, often guided by the Federal Reserve's economic outlook and policy decisions.