United States Interest Rate

Last Release

Jun 18, 2025

Actual

4.5

Units In

4.5

Frequency

Daily

Next Release

Jul 30, 2025

Time to Release

15 Days 5 Hours

Highest	Lowest	Average	Date Range	Source
20 Mar 1980	0.25 Dec 2008	5.41 %	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

President Donald Trump urged the Federal Reserve to slash interest rates to 1%, arguing it would reduce federal borrowing costs and boost economic growth. “We need a 1% rate. The Fed is killing growth,” he said on Monday. The federal funds rate currently stands at 5.25–5.50%, where the Fed has held it to control inflation and prevent economic overheating. Dropping rates to 1% would represent the most aggressive monetary easing since the COVID-19 pandemic. Trump’s call comes as federal debt servicing costs climb toward historic highs. While a lower rate could ease short-term interest payments on the national debt, economists warn it could destabilize the economy and rekindle inflation. Reuters noted the move might offer temporary relief but risk long-term financial instability.