United States Fed Funds Rate

The Federal Reserve is expected to keep the fed funds rate at 0-0.25% and bond-buying at a $120 billion monthly pace during the June 2021 meeting. Still, the central bank is likely to signal it is appropriate to begin discussing a plan for tapering although changes are expected in August or September only. Policymakers will also release new economic forecasts, with the so-called “dot plot" projections of the target interest rate expected to show some officials changed their forecast to support a rate hike in 2023. On the price front, the Fed may lift inflation forecasts for this year but the surge should be transitory and GDP growth is seen rising to 6.6%. Finally, some analysts also expect the Fed to make a small adjustment to its interest rate on excess reserves (IOER), currently at 0.10%, due to rising pressures in the short-term lending market. Interest Rate in the United States averaged 5.51 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 https://tradingeconomics.com/united-states/interest-rate