The Fed raised the federal funds rate by 75 bps to the 3%-3.25% range during its September meeting, the third straight three-quarter point increase and pushing borrowing costs to the highest since 2008. Policymakers also anticipate that ongoing increases in the target range will be appropriate which was reinforced by Chair Powell during the press conference. “We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t”. The so-called dot plot showed interest rates will likely reach 4.4% by December, above 3.4% projected in June, and rise to 4.6% next year. Meanwhile, GDP growth forecasts were revised lower to show a 0.2% expansion this year, compared to 1.7% seen in June and 1.2% in 2023, below 1.7% seen in June. Inflation as measured by PCE is seen to reach 5.4% in 2022 (5.2% projected in June) and 2.8% in 2023 (vs 2.6%). The unemployment rate was also revised slightly higher to 3.8% (vs 3.7%) this year and 4.4% (vs 3.9%) next year. source: Federal Reserve

Interest Rate in the United States averaged 5.43 percent from 1971 until 2022, reaching an all time high of 20 percent in March of 1980 and a record low of 0.25 percent in December of 2008. This page 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. United States Fed Funds Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2022.

Interest Rate in the United States is expected to be 3.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United States Fed Funds Rate is projected to trend around 4.75 percent in 2023 and 4.00 percent in 2024, according to our econometric models.

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United States Fed Funds Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-09-21 06:00 PM Fed Interest Rate Decision 3.25% 2.5% 3.25% 3.25%
2022-09-21 06:00 PM Interest Rate Projection - 3rd Yr 2.9% 2.1%
2022-09-21 06:00 PM Interest Rate Projection - Longer 2.5% 2.5%
2022-09-26 02:00 PM Fed Collins Speech
2022-09-26 04:00 PM Fed Bostic Speech
2022-09-26 08:00 PM Fed Mester Speech


Related Last Previous Unit Reference
Interest Rate 3.25 2.50 percent Sep 2022
Inflation Rate 8.30 8.50 percent Aug 2022
Unemployment Rate 3.70 3.50 percent Aug 2022
Money Supply M1 20514.70 20545.40 USD Billion Jul 2022
Money Supply M0 5536900.00 5506500.00 USD Million Jul 2022
Money Supply M2 21709.20 21667.50 USD Billion Jul 2022
Central Bank Balance Sheet 8832759.00 8822401.00 USD Million Sep 2022
Banks Balance Sheet 22853.90 22879.90 USD Billion Sep 2022
Foreign Exchange Reserves 35947.00 36273.00 USD Million Jul 2022
Loans to Private Sector 2733.33 2704.00 USD Billion Aug 2022
Repo Rate 3.05 3.05 Sep 2022

United States Fed Funds Rate
In the United States, the authority to set interest rates is divided between the Board of Governors of the Federal Reserve (Board) and the Federal Open Market Committee (FOMC). The Board decides on changes in discount rates after recommendations submitted by one or more of the regional Federal Reserve Banks. The FOMC decides on open market operations, including the desired levels of central bank money or the desired federal funds market rate.
Actual Previous Highest Lowest Dates Unit Frequency
3.25 2.50 20.00 0.25 1971 - 2022 percent Daily

News Stream
Fed Raises Rates by 75bps for 3rd Time
The Fed raised the federal funds rate by 75 bps to the 3%-3.25% range during its September meeting, the third straight three-quarter point increase and pushing borrowing costs to the highest since 2008. Policymakers also anticipate that ongoing increases in the target range will be appropriate which was reinforced by Chair Powell during the press conference. “We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t”. The so-called dot plot showed interest rates will likely reach 4.4% by December, above 3.4% projected in June, and rise to 4.6% next year. Meanwhile, GDP growth forecasts were revised lower to show a 0.2% expansion this year, compared to 1.7% seen in June and 1.2% in 2023, below 1.7% seen in June. Inflation as measured by PCE is seen to reach 5.4% in 2022 (5.2% projected in June) and 2.8% in 2023 (vs 2.6%). The unemployment rate was also revised slightly higher to 3.8% (vs 3.7%) this year and 4.4% (vs 3.9%) next year.
2022-09-21
Fed to Hike Rates by 75bps for 3rd Time
The Federal Reserve is expected to deliver a 75 bps hike during its September 2022 meeting, which would be the third straight three-quarter point increase, pushing borrowing costs to the 3%-3.25% range, the highest since 2008. Some analysts still bet the central bank could deliver an even bigger rate hike. At the same time, the so-called dot plot is expected to show interest rates will likely reach 4% by December, above 3.4% projected in June, and rise to around 4.5% next year, higher than 3.8% seen three months ago. Fed policymakers have been reiterating their commitment to bring inflation down which holds close to levels not seen in 40 years. Investors will also keep a close eye on new projections for inflation, unemployment, and GDP.
2022-09-21
Fed to Hike Rates by 75bps for 3rd Time
The Federal Reserve is expected to deliver a 75 bps hike during its September 2022 meeting, which would be the third straight three-quarter point increase, pushing borrowing costs to the 3%-3.25% range, the highest since 2008. Some analysts still bet the central bank could deliver an even bigger rate hike. At the same time, the so-called dot plot is expected to show interest rates will likely reach 4% by December, above 3.4% projected in June, and rise to around 4.5% next year, higher than 3.8% seen three months ago. Fed policymakers have been reiterating their commitment to bring inflation down which holds close to levels not seen in 40 years. Investors will also keep a close eye on new projections for inflation, unemployment, and GDP.
2022-09-20