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.

Deposit Interest Rate in Seychelles increased to 2.39 percent in 2024 from 1.90 percent in 2023. This dataset includes a chart with historical data for Deposit Interest Rate in Seychelles.

United States US: Real Interest Rate data was reported at 2.208 % pa in 2016. This records an increase from the previous number of 2.152 % pa for 2015. United States US: Real Interest Rate data is updated yearly, averaging 3.162 % pa from Dec 1961 (Median) to 2016, with 56 observations. The data reached an all-time high of 8.720 % pa in 1981 and a record low of -1.280 % pa in 1975. United States US: Real Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Interest Rates. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files using World Bank data on the GDP deflator.; ;

The Volcker Shock was a period of historically high interest rates precipitated by Federal Reserve Chairperson Paul Volcker's decision to raise the central bank's key interest rate, the Fed funds effective rate, during the first three years of his term. Volcker was appointed chairperson of the Fed in August 1979 by President Jimmy Carter, as replacement for William Miller, who Carter had made his treasury secretary. Volcker was one of the most hawkish (supportive of tighter monetary policy to stem inflation) members of the Federal Reserve's committee, and quickly set about changing the course of monetary policy in the U.S. in order to quell inflation. The Volcker Shock is remembered for bringing an end to over a decade of high inflation in the United States, prompting a deep recession and high unemployment, and for spurring on debt defaults among developing countries in Latin America who had borrowed in U.S. dollars.

Monetary tightening and the recessions of the early '80s

Beginning in October 1979, Volcker's Fed tightened monetary policy by raising interest rates. This decision had the effect of depressing demand and slowing down the U.S. economy, as credit became more expensive for households and businesses. The Fed funds rate, the key overnight rate at which banks lend their excess reserves to each other, rose as high as 17.6 percent in early 1980. The rate was allowed to fall back below 10 percent following this first peak, however, due to worries that inflation was not falling fast enough, a second cycle of monetary tightening was embarked upon starting in August of 1980. The rate would reach its all-time peak in June of 1981, at 19.1 percent. The second recession sparked by these hikes was far deeper than the 1980 recession, with unemployment peaking at 10.8 percent in December 1980, the highest level since The Great Depression. This recession would drive inflation to a low point during Volcker's terms of 2.5 percent in August 1983.

The legacy of the Volcker Shock

By the end of Volcker's terms as Fed Chair, inflation was at a manageable rate of around four percent, while unemployment had fallen under six percent, as the economy grew and business confidence returned. While supporters of Volcker's actions point to these numbers as proof of the efficacy of his actions, critics have claimed that there were less harmful ways that inflation could have been brought under control. The recessions of the early 1980s are cited as accelerating deindustrialization in the U.S., as manufacturing jobs lost in 'rust belt' states such as Michigan, Ohio, and Pennsylvania never returned during the years of recovery. The Volcker Shock was also a driving factor behind the Latin American debt crises of the 1980s, as governments in the region defaulted on debts which they had incurred in U.S. dollars. Debates about the validity of using interest rate hikes to get inflation under control have recently re-emerged due to the inflationary pressures facing the U.S. following the Coronavirus pandemic and the Federal Reserve's subsequent decision to embark on a course of monetary tightening.

Deposit Interest Rate in Lesotho decreased to 4.97 percent in August from 5.12 percent in July of 2025. This dataset includes a chart with historical data for Deposit Interest Rate in Lesotho.

The USA: Real interest rate: Bank lending rate minus inflation: The latest value from 2021 is -1.26 percent, a decline from 2.19 percent in 2020. In comparison, the world average is 1.66 percent, based on data from 106 countries. Historically, the average for the USA from 1961 to 2021 is 3.66 percent. The minimum value, -1.28 percent, was reached in 1975 while the maximum of 8.59 percent was recorded in 1981.

Long-term interest rate in the Netherlands, September, 2025 The most recent value is 2.88 percent as of September 2025, no change compared to the previous value of 2.88 percent. Historically, the average for the Netherlands from January 1960 to September 2025 is 5.35 percent. The minimum of -0.55 percent was recorded in December 2020, while the maximum of 12.3 percent was reached in September 1981. | TheGlobalEconomy.com

Switzerland Interest Rate Spread data was reported at 2.857 % pa in 2016. This records a decrease from the previous number of 2.861 % pa for 2015. Switzerland Interest Rate Spread data is updated yearly, averaging 2.656 % pa from Dec 1981 (Median) to 2016, with 36 observations. The data reached an all-time high of 4.197 % pa in 1995 and a record low of -3.190 % pa in 1981. Switzerland Interest Rate Spread data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Switzerland – Table CH.World Bank: Interest Rates. Interest rate spread is the interest rate charged by banks on loans to private sector customers minus the interest rate paid by commercial or similar banks for demand, time, or savings deposits. The terms and conditions attached to these rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files.; Median;

Deposit Interest Rate in Trinidad and Tobago remained unchanged at 1.50 percent in 2024 from 1.50 percent in 2023. This dataset includes a chart with historical data for Deposit Interest Rate in Trinidad and Tobago.

Graph and download economic data for Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity, Quoted on an Investment Basis (RIFLGFCM03NA) from 1981 to 2024 about 3-month, maturity, investment, yield, securities, interest rate, interest, rate, and USA.

In 2019, the deposit interest rate in Australia stood at **** percent. Between 1981 and 2019, the figure dropped by ***** percentage points, though the decline followed an uneven course rather than a steady trajectory.

United States US: Lending Interest Rate data was reported at 3.512 % pa in 2016. This records an increase from the previous number of 3.260 % pa for 2015. United States US: Lending Interest Rate data is updated yearly, averaging 6.922 % pa from Dec 1960 (Median) to 2016, with 57 observations. The data reached an all-time high of 18.870 % pa in 1981 and a record low of 3.250 % pa in 2014. United States US: Lending Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Interest Rates. Lending rate is the bank rate that usually meets the short- and medium-term financing needs of the private sector. This rate is normally differentiated according to creditworthiness of borrowers and objectives of financing. The terms and conditions attached to these rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics and data files.; ;

The thrift industry primarily serves as an intermediary between people who wish to save in relatively liquid deposits and people who wish to borrow mortgage funds. When long-term interest rates on mortgages are greater than short-term interest rates on deposits, thrifts generally can depend on a relatively stable supply of deposits and earn profits, retaining some of them in capital or net-worth accounts that are used to support additional mortgage lending. However, when short-term interest rates are higher than long-term rates, as they have been in 1981, many depositors withdraw funds from their savings accounts to buy higher-yielding assets. If net deposit outflows are large enough, then some thrifts may exhaust their liquidity and be forced to sell mortgage assets at a loss; if the loss is large enough, some thrifts could be forced out of business.

Long-term interest rate in the USA, September, 2025 The most recent value is 4.12 percent as of September 2025, a decline compared to the previous value of 4.26 percent. Historically, the average for the USA from January 1960 to September 2025 is 5.77 percent. The minimum of 0.62 percent was recorded in July 2020, while the maximum of 15.32 percent was reached in September 1981. | TheGlobalEconomy.com

Nigeria: Real interest rate: Bank lending rate minus inflation: The latest value from 2023 is 1.23 percent, an increase from 0.92 percent in 2022. In comparison, the world average is 4.29 percent, based on data from 87 countries. Historically, the average for Nigeria from 1970 to 2023 is -1.13 percent. The minimum value, -65.86 percent, was reached in 1981 while the maximum of 18.18 percent was recorded in 2009.

Deposit Interest Rate in Vanuatu increased to 0.62 percent in 2024 from 0.40 percent in 2023. This dataset includes a chart with historical data for Deposit Interest Rate in Vanuatu.

Deposit Interest Rate in Solomon Islands increased to 0.47 percent in 2024 from 0.41 percent in 2023. This dataset includes a chart with historical data for Deposit Interest Rate in Solomon Islands.

United States HAI: First Time: Effect Interest Rate Plus PMI data was reported at 5.020 % in Sep 2018. This records an increase from the previous number of 4.950 % for Jun 2018. United States HAI: First Time: Effect Interest Rate Plus PMI data is updated quarterly, averaging 7.380 % from Mar 1981 (Median) to Sep 2018, with 151 observations. The data reached an all-time high of 16.390 % in Dec 1981 and a record low of 3.750 % in Dec 2012. United States HAI: First Time: Effect Interest Rate Plus PMI data remains active status in CEIC and is reported by National Association of Realtors. The data is categorized under Global Database’s United States – Table US.EB019: Housing Affordability Index: First Time Buyers.

Business credit interest rate, percent in the USA, September, 2025 The most recent value is 7.38 percent as of September 2025, a decline compared to the previous value of 7.5 percent. Historically, the average for the USA from January 1960 to September 2025 is 7.04 percent. The minimum of 3.25 percent was recorded in January 2009, while the maximum of 20.5 percent was reached in August 1981. | TheGlobalEconomy.com

Liberia: Real interest rate: Bank lending rate minus inflation: The latest value from 2017 is 16.29 percent, an increase from 6.19 percent in 2016. In comparison, the world average is 5.12 percent, based on data from 122 countries. Historically, the average for Liberia from 1981 to 2017 is 10.62 percent. The minimum value, -21.64 percent, was reached in 2000 while the maximum of 30.43 percent was recorded in 1998.