US Interest Rate

The benchmark interest rate in the United States was last recorded 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.

   
 
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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.


Yellen Warns on Uncertain Economic Outlook


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.

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

Current Economic Situation and Outlook

Although the economy continues to improve, the recovery is not yet complete. Even with the recent declines, the unemployment rate remains above Federal Open Market Committee (FOMC) participants' estimates of its longer-run normal level.

Inflation has moved up in recent months but remains below the FOMC's 2 percent objective for inflation over the longer run. 

Although the decline in GDP in the first quarter led to some downgrading of our growth projections for this year, I and other FOMC participants continue to anticipate that economic activity will expand at a moderate pace over the next several years, supported by accommodative monetary policy, a waning drag from fiscal policy, the lagged effects of higher home prices and equity values, and strengthening foreign growth. The Committee sees the projected pace of economic growth as sufficient to support ongoing improvement in the labor market with further job gains, and the unemployment rate is anticipated to continue to decline toward its longer-run sustainable level. Consistent with the anticipated further recovery in the labor market, and given that longer-term inflation expectations appear to be well anchored, we expect inflation to move back toward our 2 percent objective over coming years.

Monetary Policy

If incoming data continue to support our expectation of ongoing improvement in labor market conditions and inflation moving back toward 2 percent, the Committee likely will make further measured reductions in the pace of asset purchases at upcoming meetings, with purchases concluding after the October meeting. Even after the Committee ends these purchases, the Federal Reserve's sizable holdings of longer-term securities will help maintain accommodative financial conditions, thus supporting further progress in returning employment and inflation to mandate-consistent levels.

Of course, the outlook for the economy and financial markets is never certain, and now is no exception. Therefore, the Committee's decisions about the path of the federal funds rate remain dependent on our assessment of incoming information and the implications for the economic outlook.

Financial Stability

The Committee recognizes that low interest rates may provide incentives for some investors to "reach for yield," and those actions could increase vulnerabilities in the financial system to adverse events. While prices of real estate, equities, and corporate bonds have risen appreciably and valuation metrics have increased, they remain generally in line with historical norms. In some sectors, such as lower-rated corporate debt, valuations appear stretched and issuance has been brisk. Accordingly, we are closely monitoring developments in the leveraged loan market and are working to enhance the effectiveness of our supervisory guidance. More broadly, the financial sector has continued to become more resilient, as banks have continued to boost their capital and liquidity positions, and growth in wholesale short-term funding in financial markets has been modest.

US Federal Reserve | Joana Taborda | joana.taborda@tradingeconomics.com
7/15/2014 3:42:27 PM


Recent Releases

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

US Fed Cuts Bond Buying Program Further
At its June 18th meeting, The US Federal Reserve pared monthly asset buying to $35 billion, its fifth straight $10 billion cut. The central bank also cut its 2014 GDP growth forecasts from around 2.9 percent to between 2.1 to 2.3 percent. Published on 2014-06-18


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-06-18 07:00 PM United States
Fed Interest Rate Decision
0.25% 0.25% 0.25% 0.25%
2014-06-18 07:00 PM United States
QE Treasuries
$20B $25B $15B%
2014-06-18 07:00 PM United States
QE Total
$35B $45B $35B%
2014-06-18 07:00 PM United States
QE MBS
$15B $20B $20B%
2014-07-02 04:00 PM United States
Fed's Yellen Speech


Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 20.00 0.25 Percent [+]
Money Supply M0 3948675.00 3911514.00 3948675.00 40425.00 USD Million [+]
Money Supply M1 2836.10 2793.80 2836.10 138.90 USD Billion [+]
Money Supply M2 11351.70 11303.20 11351.70 286.60 USD Billion [+]
Central Bank Balance Sheet 4348912.00 4332168.00 4348912.00 672444.00 USD Million [+]
Foreign Exchange Reserves 144581.00 144281.00 153075.00 12128.00 USD Million [+]
Loans to Private Sector 7665.38 7605.17 7665.38 39.00 USD Billion [+]





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