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United States Fed Funds Rate

The Federal Reserve is likely to announce later today that it will start scaling back its bond-buying stimulus, amid concerns about inflationary pressure and a gradual recovery in the US economy and labor market. At the same time, investors will be looking for any clues about when the central bank will begin raising interest rates. Policymakers are seen unveiling a $15 billion reduction in the central bank's monthly bond purchases, while a faster-than-expected tapering program would be viewed as a signal they could hike rates earlier and faster than projected next year. Inflation is running well above the Fed's long-term target of 2%, with the PCE price index, the Fed's preferred measure, rising 4.4% in September. Progress has also been made toward full employment, although the unemployment rate of 4.8% remains well above the pre-pandemic level of 3.5%. The Fed isn't likely to raise rates anytime soon, with markets predicting two rate hikes next year and as many as three in 2023. Interest Rate in the United States averaged 5.49 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.

from Trading Economics ..
United States Fed Funds Rate

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