US Federal Funds Rate
It's an important driver of risk appetite - lower interest rates decrease borrowing costs. Reduced costs to borrow will spur investment spending;
The rate decision is usually priced into the market, so it tends to be overshadowed by the FOMC Statement, which is focused on the future;
- US Federal Funds Rate Graph
- History
| Expected Impact / Date | Actual | Forecast | Previous |
|---|---|---|---|
| Nov 7, 2024 | 4.75% | 4.75% | 5.00% |
| Sep 18, 2024 | 5.00% | 5.25% | 5.50% |
| Jul 31, 2024 | 5.50% | 5.50% | 5.50% |
| Jun 12, 2024 | 5.50% | 5.50% | 5.50% |
| May 1, 2024 | 5.50% | 5.50% | 5.50% |
| Mar 20, 2024 | 5.50% | 5.50% | 5.50% |
| Jan 31, 2024 | 5.50% | 5.50% | 5.50% |
| Dec 13, 2023 | 5.50% | 5.50% | 5.50% |
-
- US Federal Funds Rate News
From youtube.com/markets|Nov 27, 2024After a year of unprecedented scrutiny, the Fed Reserve’s monetary policy committee will again be the focus of market attention on Dec. 18, as it makes its final rate decision for 2024. The question on the minds of investors around the globe is, will the Fed continue the rate-cut path it commenced in September? These three data points will be key to the Fed’s decision.
From cnbc.com|Nov 8, 2024Expectations for a December interest rate cut remained strong after the Federal Reserve trimmed rates by a quarter percentage point in November, but market pricing is suggesting the likelihood of a “skip” in January. On Thursday afternoon, the U.S. central bank lowered the federal funds rate, which determines what banks charge each other for overnight lending, to a target range of 4.5% to 4.75%. Before the Fed released this decision at 2 p.m. ET, market pricing pointed toward a 67% chance of another quarter-point cut in December and ...
From scotiabank.com|Nov 7, 2024The Federal Reserve’s policy rate range was cut by 25bps as widely expected. The duck-and-weave tone of most of the press conference basically made it clear that the FOMC is in some awkward limbo as it waits to see how other macroeconomic policies could change in the wake of the US election. Overall, however, I don’t think we learned much by way of nearer term perspectives today and the path to the December meeting remains data dependent with a significant bias toward another quarter point cut. A discussion around a handful of ...
From youtube.com/federalreserve|Nov 7, 2024The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest.
From federalreserve.gov|Nov 7, 2024|17 commentsRecent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/2 to 4-3/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to suppo post: FED STATEMENT COMPARE pic.twitter.com/uP0UJGndiT post: FED: VOTE IN FAVOR OF POLICY WAS UNANIMOUS post: *FED REMOVES REFERENCE TO GAINING CONFIDENCE ON INFLATION post: *FED: LABOR MARKET CONDITIONS HAVE ‘GENERALLY EASED’
From cbsnews.com|Nov 7, 2024The Federal Reserve on Thursday is expected to cut interest rates for the second time this year, with the decision coming less than two months after its surprise jumbo cut in September. The Fed is expected to shave borrowing costs by 0.25 percentage points, or half the size of its September reduction, according to forecasts from economists polled by FactSet. That would bring the federal funds rate — the interest rate banks charge each other for borrowing money — down to a range of 4.5% to 4.75% from its current 4.75% to 5% level. ...
From cnbc.com|Nov 6, 2024The Federal Reserve likely will stick to the business at hand when it wraps up its meeting Thursday with another interest rate cut, but will have its eye on the future against a backdrop that suddenly has gotten a lot more complicated. Financial markets are pricing in a near-certainty that the central bank’s Federal Open Market Committee will lower its benchmark borrowing cost by a quarter percentage point as it seeks to “recalibrate” policy for an economy that is seeing the inflation rate moderate and the labor market soften. The ...
From xm.com|Nov 5, 2024The Federal Reserve is almost certain to deliver its second rate cut of this easing cycle on Thursday, with the size of the reduction no longer in question following a string of upbeat economic indicators out of the US. A 25-basis-point cut is more than 98% priced, as investors have shifted their expectations away from large 50-bps reductions to the possibility of a pause at one of the upcoming meetings. The receding expectations of aggressive easing have spurred a more than 4% rally in the US dollar, as measured by its index against ...
| Upcoming release on Dec 18, 2024 |
|---|
| Released on Nov 7, 2024 |
|---|
- Details