The Federal Fund rates or the Fed Interest Rates are among the most important interest rates in the United States. The Federal Open Market Committee (FOMC) of the Federal Reserve Board sets these rates in the United States.. The term Federal Interest Rates or Fund Rates refers to the rates the U.S. commercial banks pay each other to borrow and lend money overnight. The FOMC sets these fund rates eight times a year. With this, the FOMC implements the changes based on the economic and financial conditions of the country. The current US Fed Interest Rate is set as per the latest FOMC meeting held on July 30-31, 2024.
US Fed Interest Rate Chart 2024
In simpler form, when the Federal Reserve hikes the fund rates, the banks pay higher while borrowing money and vice-versa. Apart from the overnight money borrowing and lending in commercial banks, the US Fed Interest Rates are also adjusted by the Federal Reserve to manage monetary policy. The Federal Open Market Committee provides target fund rates that the bank uses to negotiate with each other while determining the final interest rate. As per the latest FOMC meeting, the current federal interest rate is 5.25% – 5.50%. The target interest rate has no change from the previous meeting in 2024 and remains the same throughout the year.
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During its first meeting in January 2024, the fed fund rates have maintained the same target rates since July 2023. The last it changed on July 25-25, 2023, with an increase of 0.25 percentage points from 5.00% – 5.25% to %5.25 – 5.50%. As for the future expectations, there are still three FOMC meetings are on cards in September, November, and December 2024. The 12 voting members of the FOMC are all set to meet for the next scheduled meeting from September 17-18. According to the reports, banks can expect an interest rate cut in the next meeting which remained constant for over a year.
US Fed Interest Rate Chart 2024 Quick Overview
| Title | US Fed Interest Rate Chart 2024 |
| Country | The USA |
| Name of the Board | Federal Reserve Board |
| Name of the Committee | Federal Open Market Committee (FOMC) |
| Governed by | The U.S. Federal Government |
| Category | Finance |
| Annual Meetings | 8 |
| Next FOMC Meeting | September 17-18 |
| Year | 2024 |
| Official website | federalreserve.gov |
Federal Reserve Board and FOMC
The Federal Reserve, considered the most powerful economic institution is the central bank of the United States of America. The Federal Reserve or the Fed is responsible for managing the US Fed Interest Rate, monetary policy, and the country’s financial markets. On the other hand, the Federal Open Market Committee, or FOMC is one of the branches of the Federal Reserve.
The FOMC is mainly responsible for conducting open market conditions and adjusting the federal fund rates. The FOMC consists of members of which 7 members serve as the Board of Governors of the Federal Reserve System. The 12 members of the FOMS meet eight times a year to adjust the Fed Interest Rates. In addition to this, they also review the economic and financial conditions of the country.
What are the US Fed Interest Rates in 2024
As of now, five out of eight meetings of the Federal Open Market Committee have already been held. From January 2024 to July 2024, there have been no changes in the US Fed Interest Rates. The details related to the fund rates in 2024 over the five FOMC meetings are available in the following table:
| FOMC Meetings 2024 | Fed Interest Rates | Change in Rates |
| July 30-31, 2024 | 5.25% – 5.50% | No Change |
| June 11-12, 2024 | 5.25% – 5.50% | No Change |
| April 30 – May 1, 2024 | 5.25% – 5.50% | No Change |
| March 19-20, 2024 | 5.25% – 5.50% | No Change |
| January 30-31, 2024 | 5.25% – 5.50% | No Change |
How Does the US Fed Interest Rate 2024 Affect the US Markets?
The US Fed Interest Rate affects several sectors of the U.S. markets. From mortgage loans to stocks and bonds investments to farmers applying for loans to purchase equipment keenly depends on the federal interest rates. When interest rates are cut down, it allows the citizens to spend more whether purchasing a car or applying for a home loan. On the other hand, when the fed fund rates go on a hike, the borrowers have a tight hand while spending.
In most cases, the inflation determines the change in the interest rates. The Federal Open Market Committee overlooks the Consumer Price Index (CPI) and Producer Price Index (PPI) to measure the inflation in the country. Inflation mainly causes an increase in the price of goods and services. Even before the Federal Reserve announces the change in the Fed Interest Rates, borrowers and consumers may have early anticipation whether the rates will cut down or go on a hike.
Expected US Fed Interest Rate Increase 2024
The Federal Reserve Chair, Jerome Powell, has reflected a US Fed Interest Rate cut down may arrive in September 2024. Since the next FOMC meeting is scheduled for September 17-18, 2024, the FOMC may announce the federal fund rates cut percentage whether it is 0.25% or 0.5%. The Federal Reserve Board and the FOMC will later meet for the remaining two meetings in 2024. Once in November on 6-7 and the other in December on 17-18 of the months. For more information, citizens can also visit the official website of the Federal Reserve Board of the United States.
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