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 February 28th and said it would be patient in deciding when to raise interest rates. 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.

      Forecast    
United States Fed Funds Rate


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 Saturday, February 28, 2015.


Fed Flexible with Time of Rates Hike


Federal Reserve is prepared to consider interest rate hikes on a meeting by meeting basis, if economic conditions continue to improve, Chair Janet Yellen said in a testimony before the Senate Banking Committee.

Extracts from Chair Janet L. Yellen Semiannual Monetary Policy Report to the Congress:

The FOMC's assessment that it can be patient in beginning to normalize policy means that the Committee considers it unlikely that economic conditions will warrant an increase in the target range for the federal funds rate for at least the next couple of FOMC meetings. If economic conditions continue to improve, as the Committee anticipates, the Committee will at some point begin considering an increase in the target range for the federal funds rate on a meeting-by-meeting basis. Before then, the Committee will change its forward guidance. However, it is important to emphasize that a modification of the forward guidance should not be read as indicating that the Committee will necessarily increase the target range in a couple of meetings. Instead the modification should be understood as reflecting the Committee's judgment that conditions have improved to the point where it will soon be the case that a change in the target range could be warranted at any meeting. Provided that labor market conditions continue to improve and further improvement is expected, the Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when, on the basis of incoming data, the Committee is reasonably confident that inflation will move back over the medium term toward our 2 percent objective.

It continues to be the FOMC's assessment that even after employment and inflation are near levels consistent with our dual mandate, economic conditions may, for some time, warrant keeping the federal funds rate below levels the Committee views as normal in the longer run. It is possible, for example, that it may be necessary for the federal funds rate to run temporarily below its normal longer-run level because the residual effects of the financial crisis may continue to weigh on economic activity. As such factors continue to dissipate, we would expect the federal funds rate to move toward its longer-run normal level. In response to unforeseen developments, the Committee will adjust the target range for the federal funds rate to best promote the achievement of maximum employment and 2 percent inflation.

The FOMC intends to adjust the stance of monetary policy during normalization primarily by changing its target range for the federal funds rate and not by actively managing the Federal Reserve's balance sheet. The Committee is confident that it has the tools it needs to raise short-term interest rates when it becomes appropriate to do so and to maintain reasonable control of the level of short-term interest rates as policy continues to firm thereafter, even though the level of reserves held by depository institutions is likely to diminish only gradually. 

In sum, since the July 2014 Monetary Policy Report, there has been important progress toward the FOMC's objective of maximum employment. However, despite this improvement, too many Americans remain unemployed or underemployed, wage growth is still sluggish, and inflation remains well below our longer-run objective. As always, the Federal Reserve remains committed to employing its tools to best promote the attainment of its objectives of maximum employment and price stability.

Federal Reserve | Joana Taborda | joana.taborda@tradingeconomics.com
2/24/2015 4:29:53 PM


Recent Releases

Fed Worried About Hiking Rates Too Soon
Federal Reserve policymakers expressed concern that raising interest rates too soon could hamper U.S. economic recovery and were debating changes to policy tools when the rates would be increased, the January FOMC minutes showed. Published on 2015-02-18

Fed to Remain Patient in Hiking Rates
The Federal Reserve on January 28th repeated that it will remain "patient" in deciding when to raise interest rates. The policymakers also boosted its assessment of the economy and labor market despite lower inflation expectations and turmoil in other markets around the world. Published on 2015-01-28


Calendar GMT Event Actual Previous Consensus Forecast (i)
2015-02-18 07:00 PM
FOMC Minutes 
2015-02-24 03:00 PM
Fed's Yellen Testimony SBC 
2015-02-25 03:00 PM
Fed's Yellen Testimony HFSC 
2015-03-18 06:00 PM
Fed Interest Rate Decision 
0.25% 0.25%
2015-04-09 07:00 PM
FOMC Minutes 
0.25%
2015-04-29 07:00 PM
Fed Interest Rate Decision 
0.25%


United States Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 20.00 0.25 percent [+]
Money Supply M0 4017059.00 3934491.00 4075024.00 40425.00 USD Million [+]
Money Supply M1 2924.10 2907.30 2924.10 138.90 USD Billion [+]
Money Supply M2 11700.90 11625.10 11700.90 286.60 USD Billion [+]
Central Bank Balance Sheet 4459378.00 4468749.00 4473864.00 672444.00 USD Million [+]
Foreign Exchange Reserves 130077.00 133639.00 153075.00 12128.00 USD Million [+]
Loans to Private Sector 8001.90 7915.13 8001.90 39.04 USD Billion [+]
Banks Balance Sheet 15220.47 15179.05 15255.66 697.58 USD Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.25 Feb/15 2.50 17.50 2.50 percent [+]
Brazil 12.25 Jan/15 11.75 45.00 7.25 percent [+]
Canada 0.75 Jan/15 1.00 16.00 0.25 percent [+]
China 5.60 Jan/15 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Jan/15 0.05 4.75 0.05 percent [+]
France 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Jan/15 0.05 4.75 0.05 percent [+]
India 7.75 Feb/15 7.75 14.50 4.25 percent [+]
Indonesia 7.50 Feb/15 7.75 12.75 5.75 percent [+]
Italy 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Feb/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jan/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Russia 15.00 Jan/15 17.00 17.00 5.00 percent [+]
South Korea 2.00 Feb/15 2.00 5.25 2.00 percent [+]
Spain 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Jan/15 -0.25 3.50 -0.75 percent [+]
Turkey 7.50 Feb/15 7.75 500.00 4.50 percent [+]
United Kingdom 0.50 Feb/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jan/15 0.25 20.00 0.25 percent [+]