United States Fed Funds Rate 1971-2014 | Data | Chart | Calendar

Fed to reduce bond buying to $15 billion per month and keeps federal funds rate at 0.25 percent. 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


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. Content for - United States Fed Funds Rate - was last refreshed on Thursday, September 18, 2014.


US Fed Renews Zero Interest Rate Pledge


The Federal Reserve confirmed its commitment to keep interest rates near zero for a “considerable time” after asset purchases are completed and said the economy is expanding at a moderate pace and inflation is below its goal.

Extracts from the FOMC statement from Sept 16-17 meeting:

Information received since the Federal Open Market Committee met in July suggests that economic activity is expanding at a moderate pace. On balance, labor market conditions improved somewhat further; however, the unemployment rate is little changed and 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 been running below the Committee's longer-run objective. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators and inflation moving toward levels the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for economic activity and the labor market as nearly balanced and judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat since early this year.

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 October, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $5 billion per month rather than $10 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $10 billion per month rather than $15 billion per month.

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.



Federal Reserve | anna@tradingeconomics.com
9/17/2014 7:20:45 PM


Recent Releases

Fed May Rise Rates Sooner Than Expected
In a speech during the Economic Symposium in Jackson Hole, Fed Chair Janet Yellen brought the possibility of raising interest rates earlier than anticipated if progress in the labor market continued or if inflation moves up more rapidly. Published on 2014-08-22

Fed Exit Strategy May Occur Sooner Than Anticipated
US Federal Reserve officials said that tightening of monetary policy may happen sooner than expected and would give warning on any changes well before interest rates rise, according to minutes of its last policy meeting. Published on 2014-08-20


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
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 Total
$25B $35B
2014-07-30 07:00 PM United States
QE Treasuries
$15B $20B
2014-07-30 07:00 PM United States
QE MBS
$10B $15B
2014-08-20 07:00 PM United States
FOMC Minutes


Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 20.00 0.25 Percent [+]
Money Supply M0 3989063.00 3948679.00 3989063.00 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 4375964.00 4363781.00 4377166.00 672444.00 USD Million [+]
Foreign Exchange Reserves 145176.00 144581.00 153075.00 12128.00 USD Million [+]
Loans to Private Sector 7772.55 7727.13 7772.55 39.04 USD Billion [+]
Banks Balance Sheet 14792.09 14807.18 14813.26 697.58 USD Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Sep/14 2.50 17.50 2.50 Percent [+]
Brazil 11.00 Sep/14 11.00 45.00 7.25 Percent [+]
Canada 1.00 Sep/14 1.00 16.00 0.25 Percent [+]
China 6.00 Aug/14 6.00 10.98 5.31 Percent [+]
Euro Area 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
France 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Germany 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
India 8.00 Aug/14 8.00 14.50 4.25 Percent [+]
Indonesia 7.50 Sep/14 7.50 12.75 5.75 Percent [+]
Italy 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Japan 0.00 Sep/14 0.00 9.00 0.00 Percent [+]
Mexico 3.00 Sep/14 3.00 9.25 3.00 Percent [+]
Netherlands 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Russia 8.00 Sep/14 8.00 10.50 5.00 Percent [+]
South Korea 2.25 Sep/14 2.25 5.25 2.00 Percent [+]
Spain 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Switzerland 0.00 Sep/14 0.00 3.50 0.00 Percent [+]
Turkey 8.25 Aug/14 8.25 500.00 4.50 Percent [+]
United Kingdom 0.50 Sep/14 0.50 17.00 0.50 Percent [+]
United States 0.25 Sep/14 0.25 20.00 0.25 Percent [+]





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