The Federal Reserve announced at its December meeting it would end its pandemic-era bond purchases in March, paving the way for three interest rate hikes by the end of 2022, as policymakers voiced concerns over persistently high inflation against a backdrop of a steady recovery in the labor market. The central bank doubled the pace of taper to $30 billion a month, putting it on track to conclude it in March 2022. Still, the US central bank noted that risks to the economic outlook remain due to the uncertainty around the Omicron coronavirus variant and its impact on the economy, while reiterating that interest rates will be held at record-low levels until maximum employment is achieved. Officials have revised up the 2022 inflation forecast to 2.6% from 2.2% projected in September, while the unemployment rate is seen falling to 3.5%. Interest Rate in the United States averaged 5.47 percent from 1971 until 2021, reaching an all time high of 20 percent in March of 1980 and a record low of 0.25 percent in December of 2008. 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. This page provides the latest reported value for — United States Fed Funds Rate — plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.