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

During the meeting held on October 29th, US Federal Open Market Committee decided to end its asset purchase program. 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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United States Fed Funds Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 20.00 0.25 1971 - 2014 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, November 29, 2014.

Fed Raises Concerns Over Low Inflation

Minutes from Fed’s last meeting showed policymakers were concerned about a possible downward shift in longer-term inflation expectations in the wake of lower growth. Also, it was an easy decision for the committee to end quantitative easing, although one member did not support it.

Extracts from the minutes of Federal Open Market Committee meeting held in October:

In their discussion of the economic situation and the outlook, most meeting participants viewed the information received over the intermeeting period as suggesting that economic activity continued to expand at a moderate pace. Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate; on balance, participants judged that the underutilization of labor resources was gradually diminishing. Participants generally expected that, over the medium term, real economic activity would increase at a pace sufficient to lead to a further gradual decline in the unemployment rate toward levels consistent with the Committee's objective of maximum employment. Inflation was continuing to run below the Committee's longer-run objective. Market-based measures of inflation compensation declined somewhat, while survey-based measures of longer-term inflation expectations remained stable. Participants anticipated that inflation would be held down over the near term by the decline in energy prices and other factors, but would move toward the Committee's 2 percent goal in coming years, although a few expressed concern that inflation might persist below the Committee's objective for quite some time. Most viewed the risks to the outlook for economic activity and the labor market as nearly balanced. However, a number of participants noted that economic growth over the medium term might be slower than they currently expected if the foreign economic or financial situation deteriorated significantly.

Most participants anticipated that inflation was likely to edge lower in the near term, reflecting the decline in oil and other commodity prices and lower import prices. These participants continued to expect inflation to move back to the Committee's 2 percent target over the medium term as resource slack diminished in an environment of well-anchored inflation expectations, although a few of them thought the return to 2 percent might be quite gradual. 

In their discussion of the asset purchase program, members generally agreed that the condition articulated by the Committee when it began the program in September 2012 had been achieved--that is, there had been a substantial improvement in the outlook for the labor market--and that there was sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability. Accordingly, all members but one supported concluding the Committee's asset purchase program at the end of October and maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency MBS in agency MBS and of rolling over maturing Treasury securities at auction. 

In addition, the Committee agreed to maintain the target range for the federal funds rate at 0 to 1/4 percent and to reaffirm the indication in the statement that the Committee's decision about how long to maintain the current target range for the federal funds rate would depend on its assessment of actual and expected progress toward its objectives of maximum employment and 2 percent inflation. All but one member agreed that the Committee should reiterate the expectation that it likely would be appropriate to maintain the current target range for the federal funds rate for a considerable time following the end of the asset purchase program in October, especially if projected inflation continued to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remained well anchored. 

Federal Reserve | Joana Taborda | joana.taborda@tradingeconomics.com
11/19/2014 9:55:29 PM

Recent Releases

Fed Ends QE
The Federal Reserve decided on October 29th to end its asset purchase program and signaled a rate hike may occur sooner than anticipated if inflation and employment improve further. Published on 2014-10-29

Fed Raises Concerns Over Strong Dollar
Minutes from Federal Reserve’s last meeting showed policymakers are concerned about recent dollar appreciation and the effects it might have on growth and inflation. FOMC minutes also highlighted divergences among the Committee’s language and the risk of a market misunderstanding. Published on 2014-10-08

Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-09-17 07:00 PM
Fed Interest Rate Decision 
0.25% 0.25% 0.25% 0.25%
2014-10-17 01:30 PM
Fed's Yellen Speech 
2014-10-29 06:00 PM
Fed Interest Rate Decision 
0.25% 0.25% 0.25% 0.25%
2014-12-17 07:00 PM
Fed Interest Rate Decision 
0.25% 0.25%

United States Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 20.00 0.25 percent [+]
Money Supply M0 4001440.00 4049181.00 4075024.00 40425.00 USD Million [+]
Money Supply M1 2854.30 2855.00 2855.00 138.90 USD Billion [+]
Money Supply M2 11511.40 11473.50 11511.40 286.60 USD Billion [+]
Central Bank Balance Sheet 4462332.00 4450920.00 4462332.00 672444.00 USD Million [+]
Foreign Exchange Reserves 137054.00 141318.00 153075.00 12128.00 USD Million [+]
Loans to Private Sector 7818.98 7785.08 7818.98 39.04 USD Billion [+]
Banks Balance Sheet 15045.61 14970.18 15045.61 697.58 USD Billion [+]

Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Nov/14 2.50 17.50 2.50 percent [+]
Brazil 11.25 Oct/14 11.00 45.00 7.25 percent [+]
Canada 1.00 Oct/14 1.00 16.00 0.25 percent [+]
China 5.60 Nov/14 6.00 10.98 5.31 percent [+]
Euro Area 0.05 Nov/14 0.05 4.75 0.05 percent [+]
France 0.05 Nov/14 0.05 4.75 0.05 percent [+]
Germany 0.05 Nov/14 0.05 4.75 0.05 percent [+]
India 8.00 Oct/14 8.00 14.50 4.25 percent [+]
Indonesia 7.75 Nov/14 7.50 12.75 5.75 percent [+]
Italy 0.05 Nov/14 0.05 4.75 0.05 percent [+]
Japan 0.00 Nov/14 0.00 9.00 0.00 percent [+]
Mexico 3.00 Oct/14 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Nov/14 0.05 4.75 0.05 percent [+]
Russia 9.50 Oct/14 8.00 10.50 5.00 percent [+]
South Korea 2.00 Nov/14 2.00 5.25 2.00 percent [+]
Spain 0.05 Nov/14 0.05 4.75 0.05 percent [+]
Switzerland 0.00 Oct/14 0.00 3.50 0.00 percent [+]
Turkey 8.25 Nov/14 8.25 500.00 4.50 percent [+]
United Kingdom 0.50 Nov/14 0.50 17.00 0.50 percent [+]
United States 0.25 Oct/14 0.25 20.00 0.25 percent [+]