US Interest Rate

US Federal Reserve continued to cut monthly asset purchases and said slack in the labor market persists even as the economy is picking up. 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.

   
 
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US Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 20.00 0.25 1971 - 2014 Percent Monthly
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.


US Fed Cuts Bond Buying Program to $25 Billion


During the meeting held on July 30th, US Federal Open Market Committee reduced monthly asset purchases by another $10 Billion and said slack in the labor market persists even as the economy is improving.

Extracts from the Federal Reserve Press Release:

Information received since the Federal Open Market Committee met in June indicates that growth in economic activity rebounded in the second quarter. Labor market conditions improved, with the unemployment rate declining further. However, a range of labor market indicators suggests that there remains significant underutilization of labor resources. Household spending appears to be rising moderately and business fixed investment is advancing, while the recovery in the housing sector remains slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has moved somewhat closer to the Committee's longer-run objective. Longer-term inflation expectations have remained stable.

The Committee currently judges that there is sufficient underlying strength in the broader economy to support ongoing improvement in labor market conditions. In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions since the inception of the current asset purchase program, the Committee decided to make a further measured reduction in the pace of its asset purchases. Beginning in August, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $10 billion per month rather than $15 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $15 billion per month rather than $20 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee's sizable and still-increasing holdings of longer-term securities should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee's dual mandate.

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.

When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.

US Federal Reserve | anna@tradingeconomics.com
7/30/2014 7:18:17 PM


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During semi-annual monetary policy report to Congress, Fed Chairman Yellen signaled that interest rates can rise earlier or later than anticipated as considerable uncertainty surrounds projections for growth, unemployment and inflation. Published on 2014-07-15

Fed Likely to End Stimulus in October
Minutes from its June meeting showed the Federal Reserve plans to end its bond-buying program in October, if the economy progresses as the central bank expects. Published on 2014-07-09


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-07-30 07:00 PM United States
QE Treasuries
$15B $20B
2014-07-30 07:00 PM United States
QE Total
$25B $35B
2014-07-30 07:00 PM United States
Fed Interest Rate Decision
0.25% 0.25% 0.25% 0.25%
2014-07-30 07:00 PM United States
QE MBS
$10B $15B
2014-09-17 07:00 PM United States
Fed Interest Rate Decision
0.25%


Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 20.00 0.25 Percent [+]
Money Supply M0 3948679.00 3911514.00 3948679.00 40425.00 USD Million [+]
Money Supply M1 2834.80 2793.80 2834.80 138.90 USD Billion [+]
Money Supply M2 11351.40 11303.20 11351.40 286.60 USD Billion [+]
Central Bank Balance Sheet 4363625.00 4332168.00 4363625.00 672444.00 USD Million [+]
Foreign Exchange Reserves 145176.00 144581.00 153075.00 12128.00 USD Million [+]
Loans to Private Sector 7665.81 7605.16 7665.81 39.04 USD Billion [+]





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