United States Fed Funds Rate 1971-2015 | Data | Chart | Calendar

The Federal Reserve left its target range for the fed funds rate at 0 to 0.25 percent on July 29th, 2015. “The labor market continued to improve, with solid job gains and declining unemployment,” and “The housing sector has shown additional improvement” the Federal Open Market Committee said in a statement. The Fed will tighten policy when it sees “some further improvement in the labor market,” and is “reasonably confident” inflation will move back to its 2 percent goal over the medium term. Interest Rate in the United States averaged 5.95 percent from 1971 until 2015, reaching an all time high of 20 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
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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 to set interest rates 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 the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Content for - United States Fed Funds Rate - was last refreshed on Monday, August 31, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-08-24 08:55 PM
2015-08-26 03:00 PM
2015-08-29 05:25 PM
2015-09-01 06:10 PM
2015-09-04 02:00 AM
2015-09-04 01:10 PM

Fed on Course to Raise Rates Soon

Federal Reserve policymakers confirmed that conditions for the first rate hike had not yet been met but are approaching, as the labour market improves while inflation remains well below target, minutes of the meeting held last month showed.

Extracts From the Minutes of the Federal Open Market Committee:

In their discussion of the foreign economic outlook, participants generally viewed the risks from the fiscal and financial problems in Greece as having diminished somewhat, although it was observed that Greece still faced many challenges and that Greek economic progress was likely to be limited over the near term. While the recent Chinese stock market decline seemed to have had limited implications to date for the growth outlook in China, several participants noted that a material slowdown in Chinese economic activity could pose risks to the U.S. economic outlook. Some participants also discussed the risk that a possible divergence in interest rates in the United States and abroad might lead to further appreciation of the dollar, extending the downward pressure on commodity prices and the weakness in net exports.

During their discussion of economic conditions and monetary policy, participants mentioned a number of considerations associated with the timing and pace of policy normalization. Most judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point. Participants observed that the labor market had improved notably since early this year, but many saw scope for some further improvement. Many participants indicated that their outlook for sustained economic growth and further improvement in labor markets was key in supporting their expectation that inflation would move up to the Committee's 2 percent objective, and that they would be looking for evidence that the economic outlook was evolving as they anticipated. However, some participants expressed the view that the incoming information had not yet provided grounds for reasonable confidence that inflation would move back to 2 percent over the medium term and that the inflation outlook thus might not soon meet one of the conditions established by the Committee for initiating a firming of policy. Several of these participants cited evidence that the response of inflation to the elimination of resource slack might be attenuated and expressed concern about risks of further downward pressure on inflation from international developments. Another concern related to the risk of premature policy tightening was the limited ability of monetary policy to offset downside shocks to inflation and economic activity when the federal funds rate was near its effective lower bound.

In their discussion of the appropriate path for the federal funds rate and associated communications at and after the time of the first increase in the target range, participants expressed support for emphasizing that the course of policy would remain conditional on the Committee's assessment of economic developments and the outlook relative to its objectives. It was also noted that the Committee's communications around the time of the first rate increase should emphasize that the expected path for policy, not the initial increase, would be the most important determinant of financial conditions and should acknowledge that policy would continue to be accommodative to support progress toward the Committee's dual objectives

The Committee concluded that, although it had seen further progress, the economic conditions warranting an increase in the target range for the federal funds rate had not yet been met. Members generally agreed that additional information on the outlook would be necessary before deciding to implement an increase in the target range. One member, however, indicated a readiness to take that step at this meeting but was willing to wait for additional data to confirm a judgment to raise the target range.

Fed | Joana Taborda | joana.taborda@tradingeconomics.com
8/19/2015 7:40:29 PM

Recent Releases

Fed Remains On Course To Lift Rates in 2015
Rates will be raised when further improvements in the labor market occur, the Federal Reserve said during the meeting held on July 29th. Highlighting that is confident inflation will move back to its 2 percent objective over the medium term.
Published on 2015-07-29

Yellen Says US Outlook Remains Favorable
Fed Chair Janet Yellen said the outlook for the US economy is favorable, signaling once again the Fed may start raising rates this year. However, Yellen showed concerns over the Greek crisis and the Chinese slowdown which pose risks to the US outlook, prepared statement for the Congressional Testimony showed.
Published on 2015-07-15

Fed Likely to Raise Rates this Year
The Federal Reserve Chair Janet Yellen said she expects the Fed to raise interest rates at some point later this year but stressed the labour market hasn’t fully recovered yet while inflation remains low.
Published on 2015-07-10

Fed Shows Concerns over Greece and China
Fed officials needed more evidence from the strengthening of the US economy before raising rates, while noticing risks arising from the Greek crisis and the Chinese slowdown, minutes of the meeting held last month showed.
Published on 2015-07-08

United States Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 20.00 0.25 percent [+]
Money Supply M0 3961126.00 3919529.00 4075024.00 48362.00 USD Million [+]
Money Supply M1 3035.60 3007.90 3035.60 138.90 USD Billion [+]
Money Supply M2 12059.10 11982.40 12059.10 286.60 USD Billion [+]
Central Bank Balance Sheet 4446736.00 4460579.00 4473864.00 672444.00 USD Million [+]
Foreign Exchange Reserves 119318.00 120333.00 153075.00 12128.00 USD Million [+]
Loans to Private Sector 1897.45 1888.72 1897.45 13.64 USD Billion [+]
Banks Balance Sheet 15427600.00 15410800.00 15427600.00 697581.70 USD Million [+]
Foreign Bond Investment 69849.00 53358.00 118012.00 -55007.00 USD Million [+]

Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 Aug/15 2.00 17.50 2.00 percent [+]
Brazil 14.25 Jul/15 13.75 45.00 7.25 percent [+]
Canada 0.50 Jul/15 0.75 16.00 0.25 percent [+]
China 4.60 Aug/15 4.85 10.98 4.60 percent [+]
Euro Area 0.05 Jul/15 0.05 4.75 0.05 percent [+]
India 7.25 Aug/15 7.25 14.50 4.25 percent [+]
Indonesia 7.50 Aug/15 7.50 12.75 5.75 percent [+]
Japan 0.00 Aug/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jul/15 3.00 9.25 3.00 percent [+]
Russia 11.00 Jul/15 11.50 17.00 5.00 percent [+]
South Korea 1.50 Aug/15 1.50 5.25 1.50 percent [+]
Switzerland -0.75 Jun/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Aug/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Aug/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jul/15 0.25 20.00 0.25 percent [+]