United States Interest Rate

Last Release

Sep 20, 2023

Actual

5.5

Units In

5.5

Frequency

Daily

Next Release

Nov 01, 2023

Time to Release

1 Months 10 Days 11 Hours

Highest	Lowest	Average	Date Range	Source
20 Mar 1980	0.25 Dec 2008	5.42 %	1971-2023	Federal Reserve

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.

Latest Updates

The Federal Reserve kept the target range for the federal funds rate at a 22-year high of 5.25%-5.5% in its September 2023 meeting, following a 25bps hike in July, and in line with market expectations but signaled there could be another hike this year. Projections released in the dot-plot showed the likelihood of one more increase this year, then two cuts in 2024. Policymakers said that recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have slowed in recent months but remain strong, and the unemployment rate has remained low. Inflation remains elevated.