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United States Fed Funds Rate

The Federal Reserve is expected to signal that it will start hiking interest rates in March during its first meeting of 2022. Investors will also look for more details on the policy normalization process which began last November. The Federal Reserve announced at its December meeting it would end its pandemic-era bond purchases in March and there are expectations that the bank will start reducing the $8.9 trillion balance sheet as early as May. Also, many investors believe the Fed will tighten monetary policy more aggressively than anticipated and deliver 4 rate hikes instead of 3. source: Federal Reserve

Interest Rate in the United States averaged 5.47 percent from 1971 until 2021, reaching an all time high of 20 percent in March of 1980 and a record low of 0.25 percent in December of 2008. 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. United States Fed Funds Rate – data, historical chart, forecasts and calendar of releases – was last updated on January of 2022.

Interest Rate in the United States is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United States Fed Funds Rate is projected to trend around 1.75 percent in 2023, according to our econometric models.

United States Fed Funds Rate

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.

1971 – 2021