United States Fed Funds Rate 1971-2015 | Data | Chart | Calendar

The Federal Reserve kept the interest rate at 0.25 percent during the meeting held on April 29th. Interest Rate in the United States averaged 6.04 Percent from 1971 until 2014, reaching an all time high of 20.00 Percent in March of 1980 and a record low of 0.25 Percent in December of 2008. Interest Rate in the United States is reported by the Federal Reserve.

United States Fed Funds Rate
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Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 20.00 0.25 1971 - 2015 percent Daily
In the United States, the authority for interest rate decisions 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. This page provides - Fed Cuts QE to $65 Billion Pace - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - United States Fed Funds Rate - was last refreshed on Friday, May 29, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-05-27 12:10 AM
2015-05-28 07:20 AM
2015-05-28 07:45 PM
2015-06-17 07:00 PM 0.25%
2015-07-09 07:00 PM 0.25%
2015-07-29 07:00 PM 0.25%

Fed Likely to Raise Rates in 2015

The Federal Reserve is likely to start raising interest rates this year as the U.S. economy seems well positioned for continued growth, Fed Chair Janet Yellen said on Friday.

Excerpts from Speech by Chair Janet L. Yellen at the Providence Chamber of Commerce, Providence, Rhode Island:

Putting it all together, the economic projections of most members of the FOMC call for growth in real gross domestic product of roughly 2-1/2 percent per year over the next couple of years, a little faster than the pace of the recovery thus far, with the unemployment rate continuing to move down to near 5 percent by the end of this year. And for inflation, as I noted earlier, my colleagues and I expect inflation to move up toward our objective of 2 percent as the economy strengthens further and as transitory influences wane.

Of course, the outlook for the economy, as always, is highly uncertain. I am describing the outlook that I see as most likely, but based on many years of making economic projections, I can assure you that any specific projection I write down will turn out to be wrong, perhaps markedly so. For many reasons, output and job growth over the next few years could prove to be stronger, and inflation higher, than I expect; correspondingly, employment could grow more slowly, and inflation could remain undesirably low.

Given this economic outlook and the attendant uncertainty, how is monetary policy likely to evolve over the next few years? Because of the substantial lags in the effects of monetary policy on the economy, we must make policy in a forward-looking manner. Delaying action to tighten monetary policy until employment and inflation are already back to our objectives would risk overheating the economy.

For this reason, if the economy continues to improve as I expect, I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. To support taking this step, however, I will need to see continued improvement in labor market conditions, and I will need to be reasonably confident that inflation will move back to 2 percent over the medium term.

After we begin raising the federal funds rate, I anticipate that the pace of normalization is likely to be gradual. The various headwinds that are still restraining the economy, as I said, will likely take some time to fully abate, and the pace of that improvement is highly uncertain. If conditions develop as my colleagues and I expect, then the FOMC's objectives of maximum employment and price stability would best be achieved by proceeding cautiously, which I expect would mean that it will be several years before the federal funds rate would be back to its normal, longer-run level.

Having said that, I should stress that the actual course of policy will be determined by incoming data and what that reveals about the economy. We have no intention of embarking on a preset course of increases in the federal funds rate after the initial increase. Rather, we will adjust monetary policy in response to developments in economic activity and inflation as they occur. If conditions improve more rapidly than expected, it may be appropriate to raise interest rates more quickly; conversely, the pace of normalization may be slower if conditions turn out to be less favorable.

Fed | Joana Taborda | joana.taborda@tradingeconomics.com
5/22/2015 6:22:13 PM

Recent Releases

Fed June Rate Rise Is Unlikely
Some Fed officials believed it would be too early to raise interest rates in June even though a first quarter economic slowdown was unlikely to persist, minutes of the meeting held last month showed. Published on 2015-05-20

Fed Pushes Back Expectations of Rate Hike
The US recovery has lost momentum during the winter months and the pace of hiring has moderated, the Federal Reserve said in a statement released on April 29th, reinforcing expectations that rates would be kept near zero at next meeting in June or longer. Published on 2015-04-29

United States Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 20.00 0.25 percent [+]
Money Supply M0 4059338.00 4030569.00 4075024.00 48362.00 USD Million [+]
Money Supply M1 2994.50 2987.70 2994.50 138.90 USD Billion [+]
Money Supply M2 11895.10 11845.70 11895.10 286.60 USD Billion [+]
Central Bank Balance Sheet 4443185.00 4444217.00 4473864.00 672444.00 USD Million [+]
Foreign Exchange Reserves 119270.00 124717.00 153075.00 12128.00 USD Million [+]
Loans to Private Sector 8186.78 8120.37 8186.78 39.04 USD Billion [+]
Banks Balance Sheet 15326.07 15258.05 15368.96 697.58 USD Billion [+]
Foreign Bond Investment 9913.00 -6154.00 118012.00 -55007.00 USD Million [+]

Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 May/15 2.25 17.50 2.00 percent [+]
Brazil 13.25 Apr/15 12.75 45.00 7.25 percent [+]
Canada 0.75 May/15 0.75 16.00 0.25 percent [+]
China 5.10 May/15 5.35 10.98 5.10 percent [+]
Euro Area 0.05 Apr/15 0.05 4.75 0.05 percent [+]
France 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Apr/15 0.05 4.75 0.05 percent [+]
India 7.50 Apr/15 7.50 14.50 4.25 percent [+]
Indonesia 7.50 May/15 7.50 12.75 5.75 percent [+]
Italy 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Japan 0.00 May/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Apr/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Russia 12.50 Apr/15 14.00 17.00 5.00 percent [+]
South Korea 1.75 May/15 1.75 5.25 1.75 percent [+]
Spain 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Apr/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 May/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 May/15 0.50 17.00 0.50 percent [+]
United States 0.25 Apr/15 0.25 20.00 0.25 percent [+]