Wednesday, April 7, 2021

United States Fed Funds Rate

The Fed left the target range for its federal funds rate unchanged at 0-0.25% during its March meeting, and signaled a strong likelihood that there may be no rate hikes through 2023. Policymakers noted that indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remained weak. The central bank revised up its GDP forecasts for 2021 and 2022 due to the approval of President Biden’s $1.9-trillion recovery package and the ongoing COVID-19 vaccination programme. The world's largest economy is seen growing by 6.5% this year (vs 4.2% projected in December) and by 3.3% in 2022 (vs 3.2%). The PCE price index is expected to rise by 2.4% in 2021 (vs 1.8%) and by 2.0% in 2022 (vs 1.9%). Regarding the labor market, unemployment rate is now seen at 4.5% this year (vs 5.0%) and at 3.9% in 2022 (vs 4.2%). Interest Rate in the United States averaged 5.53 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. 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.
Source | 🇺🇸 United States : Chart