US Federal Funds Rate
It's an important driver of commodity demand - lower interest rates decrease carrying costs. Reduced costs to store goods will spur companies to make investments in raw materials, leading to higher inventory levels;
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 |
|---|---|---|---|
| Mar 19, 2025 | 4.50% | 4.50% | 4.50% |
| Jan 29, 2025 | 4.50% | 4.50% | 4.50% |
| Dec 18, 2024 | 4.50% | 4.50% | 4.75% |
| 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% |
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- US Federal Funds Rate News
From youtube.com/markets|22 hr agoBill Dudley, former president of the New York Fed, says the Federal Reserve is "flying blind" because they don't know what's going to happen to economic growth. "Powell came in and gave a pretty dovish performance in the sense of, ‘We got this, we’re in a good place, we can afford to wait, we’ll see how it goes, we’re gonna get the job done,’” he said.
From monexeurope.com|23 hr ago|1 commentThe FOMC kept rates unchanged at the March policy meeting, in line with consensus expectations and our own pre-decision call. This leaves the target range for the Federal Funds Rate untouched at 4.25-4.50% for the second consecutive meeting. Somewhat to our surprise, however, other elements of this latest decision skewed dovish on net. The FOMC announced that quantitative tightening would be scaled back, beginning in April, while delivering an unchanged set of median rate projections. An upgrade to inflation expectations combined ...
From cnbc.com|25 hr agoThe Federal Reserve in a closely watched decision Wednesday held the line on benchmark interest rates though still indicated that reductions are likely later in the year. Faced with pressing concerns over the impact tariffs will have on a slowing economy, the rate-setting Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December. Markets had been pricing in virtually zero chance of a move at this week’s two-day policy meeting. Along with the decision, officials ...
From youtube.com/federalreserve|25 hr agoThe 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. The Federal Reserve conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy; promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad; promotes the ...
From federalreserve.gov|25 hr ago|3 commentsIn conjunction with the Federal Open Market Committee (FOMC) meeting held on March 18–19, 2025, meeting participants submitted their projections of the most likely outcomes for real gross domestic product (GDP) growth, the unemployment rate, and inflation for each year from 2025 to 2027 and over the longer run. Each participant’s projections were based on information available at the time of the meeting, together with her or his assessment of appropriate monetary policy—including a path for the federal funds rate and its longer-run value—and assumptions about other factors likely to affect economic outcomes. The longer-run projections represent each participant’s assessment of the value to which each variable would be expected to converge, over time, under appropriate monetary policy and in the absence of further shocks to the economy. “Appropriate monetary policy” is defined as the future path of policy that each participant deems most likely to foster outcomes for economic activity and inflation that best satisfy his or her individual interpretation of the statutory mandate to promote maximum employment and price stability. post: *FOMC MEDIAN FORECAST SHOWS 50 BPS OF RATE CUTS IN 2025 TO 3.9% post: Powell finally found the "stag" and the "flation": Fed cuts year-end GDP forecast from 2.1% to 1.7% Fed raises year-end core PCE forecast from 2.5% to 2.8% Fed raises year-end unemployment forecast from 4.3% to 4.4% pic.twitter.com/ftFkQL65RS post:
FOUR FED OFFICIALS EXPECT NO 2025 CUTS, VERSUS ONE IN DECEMBER
From federalreserve.gov|25 hr ago|3 commentsRecent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of 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. Beginning in April, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion. The Committee will maintain the monthly redemption cap on agency debt and agency mortgage-backed securities at $35 billion. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective. In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. post: The Fed holds rates steady. The median of the rate cut forecasts are unchanged from December (still at a two cut median). The Fed slows Treasury runoff (QT) to $5 billion per month. Chris Waller dissents on the QT decision. pic.twitter.com/CrXq1qo92C post: FED TO SLOW BALANCE-SHEET RUNOFF STARTING APRIL 1
From bnnbloomberg.ca|27 hr agoU.S. Federal Reserve officials will likely hold interest rates steady when they meet Wednesday, buying time to assess how President Donald Trump’s policies impact an economy facing both lingering inflationary pressures and mounting growth concerns. Fresh tariffs from the Trump administration, paired with retaliatory action from U.S. trade partners, have dented consumer sentiment and fanned Americans’ expectations for future inflation. And with some levies getting postponed shortly after being announced, it’s unclear how the trade war ...
From finance.yahoo.com|30 hr ago|4 commentsvideo Federal Reserve officials are convening in Washington, D.C., today for their March FOMC meeting, which will conclude with a decision on interest rates on Wednesday followed by a press conference with Chair Jerome Powell. The US central bank is expected to hold rates where they are, with some economists projecting the Fed won't even cut rates this year or next year. Yahoo Finance senior Fed reporter Jennifer Schonberger breaks down former Kansas City Fed CEO Esther George's rate forecasts and Wall Street's own inflation ...
| Released on Mar 19, 2025 |
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