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.

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

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 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 Effective Rate (RIFSPFFNB) from 1954-07-01 to 2025-08-04 about funds, federal, interest rate, interest, rate, and USA.

Effective Federal Funds Rate in the United States remained unchanged at 4.33 percent on Thursday August 28. This dataset includes a chart with historical data for the United States Effective Federal Funds Rate.

A survey from Q3 2022 suggest concerns among the majority of the United States banking industry about the rising Federal Reserve interest rates. ** percent of the respondents worried that the Fed would overcorrect for inflation by raising the rates too fast and too high. In contrast, ** 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 *** and **** percent. As of December 2022, the Federal Funds Effective Rate was *** percent.

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 two percent by June 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 December 2024, the United States had the highest 10-year government bond yield among developed economies at 4.59 percent, while Switzerland had the lowest at 0.27 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, Range, Midpoint (FEDTARRM) from 2025 to 2027 about projection, federal, rate, and USA.

United States - Federal Funds Effective Rate was 4.33% in August of 2025, according to the United States Federal Reserve. Historically, United States - Federal Funds Effective Rate reached a record high of 22.36 in July of 1981 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 - Federal Funds Effective Rate - last updated from the United States Federal Reserve on September of 2025.

United States - FOMC Summary of Economic Projections for the Fed Funds Rate, Median was 3.10% in January of 2027, 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 September of 2025.

FED Interest Rate Decision is made on a predetermined date during the vote among the members of the Federal Open Market Committee (FOMC) concerning the Federal Reserve short-term interest rates to be

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 - 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 July of 2025.

While interest rates in the United States declined ***** times by late 2024, average credit card interest rates did not immediately follow suit. This reveals itself when comparing the Federal Reserve interest rate against the APR, or annual percentage rates, of credit cards issued by commercial banks. The APR reached a record high in the country in 2024, likely adding to the growing credit card debt in the United States. This was below the APR of credit cards in a country like Brazil, however. It is expected that the credit card interest rates will continue to need time to catch up with the Fed interest rate.

Content

More details about each file are in the individual file descriptions.

Context

This is a dataset hosted by the Federal Reserve Economic Database (FRED). The organization has a data platform found here and they update their information according the amount of data that is brought in. Explore FRED using Kaggle and all of the data sources available through the FRED organization page!

• Update Frequency: This dataset is updated daily.

Acknowledgements

This dataset is maintained using FRED's APIs and Kaggle's API.

Cover photo by Abraham Osorio on Unsplash
Unsplash Images are distributed under a unique Unsplash License.

Graph and download economic data for Interest Rates: Immediate Rates (< 24 Hours): Federal Funds Rate: Total for United States (IRSTFR01USQ156N) from Q1 1960 to Q4 2023 about federal, interest rate, interest, rate, and USA.

United States Proxy Funds Rate: Monthly data was reported at 4.359 % pa in Apr 2025. This records a decrease from the previous number of 4.765 % pa for Mar 2025. United States Proxy Funds Rate: Monthly data is updated monthly, averaging 5.062 % pa from Jun 1976 (Median) to Apr 2025, with 587 observations. The data reached an all-time high of 17.423 % pa in Sep 1981 and a record low of -1.421 % pa in Jan 2011. United States Proxy Funds Rate: Monthly data remains active status in CEIC and is reported by Federal Reserve Bank of San Francisco. The data is categorized under Global Database’s United States – Table US.M008: Proxy Funds Rates.

United States - Effective Federal Funds Rate: 1st Percentile was 4.31% in August of 2025, according to the United States Federal Reserve. Historically, United States - Effective Federal Funds Rate: 1st Percentile reached a record high of 5.31 in December of 2023 and a record low of 0.01 in March of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Effective Federal Funds Rate: 1st Percentile - last updated from the United States Federal Reserve on September of 2025.

Dataset Description

This dataset contains the actual and predicted federal funds target rate for the United States from 1990 to 2023. The federal funds target rate is the interest rate at which depository institutions lend their excess reserves to each other overnight. It is set by the Federal Open Market Committee (FOMC) and is a key tool used by the Federal Reserve to influence the economy.

The dataset includes the following five columns:

Release Date: The date on which the data was released by the Federal Reserve. Time: The time of day at which the data was released. Actual: The actual federal funds target rate. Predicted: The predicted federal funds target rate. Forecast: The forecast federal funds target rate.

Data Usage

This dataset can be used for a variety of purposes, including: - Analyzing trends in the federal funds target rate over time. - Forecasting the future path of the federal funds target rate. - Assessing the effectiveness of monetary policy. - Data Quality

The data for this dataset is of high quality. The Federal Reserve is a reputable source of data and the data is updated regularly.

Data Limitations

The data for this dataset is limited to the United States. Additionally, the data does not include information on the factors that influenced the Federal Open Market Committee's decision to set the federal funds target rate.