United States Federal Funds Interest Rate

This page provides information on the United States Federal Funds Interest Rate, which is a critical economic indicator set by the Federal Reserve (Fed). The current interest rate is in the range of 4.00%–4.25% after a recent cut in September 2025. This change was made to address increasing risks to employment while managing inflation expectations.

The Federal Reserve board considers several factors when determining interest rate levels, including:

Inflation risks
Employment data
Overall economic growth

The last average interest rate recorded was 5.41% from 1971 to 2025, peaking at 20% in March 1980 and hitting a low of 0.25% in December 2008.

Future Projections

Looking forward, analysts expect the interest rate will decrease to around 3.75% by the end of this quarter, with longer-term projections suggesting a trend downwards to about 3.50% in 2026 and 3.25% in 2027.

Key Upcoming Events

Fed Interest Rate Decision on October 29, 2025
Fed Interest Rate Decision on December 10, 2025
Further rate decisions scheduled into 2026 as part of ongoing economic assessments.

Overall, the Fed is balancing between maintaining growth while keeping inflation under control, signaling potential future rate cuts.