Federal Funds Rate | Federal Reserve Fed Fund Rates (2024)

FAQs

What is the Fed funds rate today? ›

Right now, the Fed interest rate is 5.25% to 5.50%. The FOMC established that rate in late July 2023. At its most recent meeting in June, the committee decided to leave the rate unchanged.

Today's Fed Meeting

The Federal Reserve's policy-making committee voted to keep the benchmark interest rate steady at the conclusion of their meeting on Wednesday. Officials' collective forecast for interest rates now implies only one quarter-point cut by the end of 2024, a significant shift from earlier this year.

Late last year, the Fed was widely expected to cut the benchmark federal-funds rate in 2024 as many as six times. But at the conclusion of its June 11 and 12 policy meeting, the central bank announces that it's keeping its rate target between 5.25% and 5.5%—right where it's been since July of 2023.

The Fed is now expecting a December 2024 federal-funds rate of 5.1%, implying one 0.25% cut from current levels. By contrast, in March the Fed called for a 4.6% rate, implying three rate cuts.

What Is the Current Prime Rate? As of May 20, 2024, the current prime rate is 8.50%, according to The Wall Street Journal's Money Rates table. This source aggregates the most common prime rates charged throughout the U.S. and in other countries. The federal funds rate is currently 5.25% to 5.50%.

WASHINGTON— The Federal Reserve kept its key interest rate unchanged again Wednesday and scaled back its forecast from three rate cuts to just one this year after an inflation pickup in early 2024.

Today's national mortgage interest rate trends

On Wednesday, June 12, 2024, the current average interest rate for a 30-year fixed mortgage is 7.09%, decreasing 1 basis point over the last seven days.

Basic Info. Effective Federal Funds Rate is at 5.33%, compared to 5.33% the previous market day and 5.08% last year.

Will the Fed raise interest rates again? ›

Investors do not expect the Federal Reserve to raise interest rates again, and officials have made it clear that they see further increases as unlikely. But one important takeaway from recent Fed commentary is that unlikely and inconceivable are not the same thing.

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This reflects an upward revision in Fannie's analysis: One month prior, the mortgage giant expected rates would fall to 6.4% by year-end, and just a few months ago, it forecasted rates would dip below 6% by the end of this year. All told, Fannie Mae predicts mortgage rates will average 7% in 2024 and 6.7% in 2025.

Projections suggest that we may see no rate increases in 2024, and that the Fed might start dropping its rate later this year, according to the CME FedWatch Tool on April 30. If the Fed rate drops, CD rates will likely follow suit, though it's up to each bank and credit union if and when that occurs.

Projected Interest Rates In The Next Five Years

ING's interest rate predictions indicate 2024 rates starting at 4%, with subsequent cuts to 3.75% in the second quarter. Then, 3.5% in the third, and 3.25% in the final quarter of 2024. In 2025, ING predicts a further decline to 3%.

There are no sources for officially projected interest rates in five years, but the Mortgage Bankers Association does predict rates on 30-year mortgages will drop to 5.9% by the end of 2025. Fannie Mae predicts a 6.6% rate.

The federal discount rate is the interest rate the Fed charges on loans. It is not to be confused with the federal funds rate, which is the rate banks charge each other for loans that are used to hit reserve requirements.

The discount rate is the rate at which the central bank lends to banks as a lender of last resort. The Federal Reserve sets both rates. The fed funds rate will always be lower than the discount rate.

Interest Rate in the United States averaged 5.42 percent from 1971 until 2024, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008.