Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

Federal funds rate history: 1954 to January 2024

Fed holds interest rates at its first meeting of 2024.

Held

Hold

Fed holds rates

to a range of 5.25% to 5.50% on Wednesday, January 31, 2024.

The Fed held rates at the it’s first meeting in January of 2024, after a string of rate holds since its last hike in July 2023.

Latest federal funds rate data at a glance

  1. Current fed rate: Held at 5.25% to 5.50% following the January 31, 2024 meeting(1)
  2. Effective federal funds rate: 5.33% as of January 31, 2024(4)
  3. Previous rate change: Hold at 5.25% to 5.50% on December 13, 2023(1)
  4. Rate this time last year: Raised rates by 0.25% to range of 4.5-4.75% a its first meeting in February, 2022(1)
  5. Next meeting: March 19-20, 2024(2)
  6. Highest rate since 1954: 19.1% monthly average recorded June 1981(3)
  7. Lowest rate since 1954: 0.05% monthly average recorded April 2020(3)

Changes to the federal funds rate in 2023

The Fed held rates at a target range between 5.25% and 5.50% following the first Federal Open Market Committee (FOMC) meeting of 2024.

Over the last 24 months or so we’ve seen a lot of movement in the Fed rate, with the Fed raising rates four times in 2023, starting with consecutive rate increases of 25 basis points in February, March and May 2023, rates holding in June only increased by a further 25 basis point hike in July. Since it’s been back-to-back-to-back holds in September, November and December.

The Fed raised rates seven times in 2022, which is the highest number of Fed rate hikes in a single year since 2005. While 2005 saw more Fed rate hikes in total (8), individual increases were just 25 basis points, whereas the changes in 2022 have ranged from 25 to 75 basis points.

Fed rate forecast

The majority of our Fed panel correctly predicted that the Fed would hold rates at the January 2024 meeting.

6 years of changes to the federal funds rate

Since 2018, the average federal funds rate has been 1.89%, which is roughly three times lower than it is today. During this period, however, the US saw historically low rates, in part due to COVID, with rates hitting a record low of 0.05% for the months of April and May 2020.

The history of federal funds rate changes

While it’s not a great sign that the fed rate is way up, currently holding at 5.33%, it’s pretty close to the average rate since 1954 — which is 4.6%.

2024 FOMC meeting calendar

Seven meetings of the Federal Open Market Committee are scheduled for 2024.

More guides on Finder

Ask an Expert

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site