United States Interest Rate

Last Release

Dec 10, 2025

Actual

3.75

Units In

Frequency

Daily

Next Release

Jan 28, 2026

Time to Release

1 Months 16 Days 17 Hours

Highest	Lowest	Average	Date Range	Source
20 Mar 1980	0.25 Dec 2008	5.4 %	1971-2025	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 cut the federal funds rate by 25 bps to a range of 3.5%–3.75% in its December 2025 meeting, following similar reductions in September and October, and in line with expectations. This brings borrowing costs to their lowest level since 2022. The committee remained divided, with three members continuing to vote against the cut, which hasn’t happened since September 2019. Stephen Miran pushed for a deeper 50bps reduction, in contrast to Austan Goolsbee and Jeffrey Schmid, who argued for keeping rates on hold. Meanwhile, policymakers left their projections for the federal funds rate unchanged from September, signaling only one 25bps cut in 2026. On the GDP front, the Fed revised its growth forecasts higher for 2025 (1.7% vs 1.6%) and 2026 (2.3% vs 1.8%). PCE inflation is now expected to be slightly lower this year at 2.9% (vs 3.0%) and next year at 2.4% (vs 2.6%). Forecasts for the unemployment rate were left unchanged at 4.5% for 2025 and 4.4% for 2026.