The next Federal Reserve (Fed) interest rate decision is due on Wednesday, September 17, 2025 at 18:00 UTC.
The US Federal Reserve (Fed) announces its decisions regarding interest rates eight times a year during Federal Open Market Committee (FOMC) meetings., approximately every six weeks. These decisions will determine wether or not the central bank will raise (rate hike), lower (rate cut), or leave the current interest rate unchanged, with each outcome having different end goals and objectives.
What is the Fed interest rate?
The current federal funds rate target range is 4.25% – 4.50%. This target range has maintained since December 18th, 2024, marking the fifth consecutive hold at this level and FOMC meeting without a rate change, resisting political pressure (particularly from President Trump) to enact a cut.
What date is the next Federal Reserve interest rate meeting?
The next Federal Reserve interest rate meeting and decision is due on September 17th, 2025.
See below for the full list of 2025's scheduled FOMC meetings:
- January 28-29
- March 18-19*
- May 6-7
- June 17-18*
- July 29-30
- September 16-17*
- October 28-29
- December 9-10*
See below for the full list of 2026's scheduled FOMC meetings:
- January 27-28
- March 17-18*
- April 28-29
- June 16-17*
- July 28-29
- September 15-16*
- October 27-28
- December 8-9*
Meetings marked with * are associated with a Summary of Economic Projections.
Each meeting concludes with an announcement regarding the FOMC's decisions surrounding US interest rates, followed by a press conference held by the Federal Reserve Chair. These dates are confirmed by the Federal Reserve, however, each meeting date is tentative until confirmed at the meeting immediately preceding it.
What is the US interest rate now?
The federal funds rate target range is currently set at 4.25% to 4.50%. This range has been in place since December 18, 2024, after a 25 basis point reduction from the previous target of 4.50% to 4.75%.
What is the effect when the Federal Reserve increases interest rates?
When the Federal Reserve raises interest rates (rate hike), borrowing becomes more expensive for consumers and businesses. This can slow consumer spending, business investment, and economic growth, while also strengthening the U.S. dollar and making exports less competitive.
Higher rates help control inflation but can weaken the housing market, increase debt burdens, and, if raised too aggressively, risk triggering a recession.
What happens when the Fed cuts interest rates?
When the Federal Reserve cuts interest rates (rate cut), borrowing becomes cheaper for consumer and businesses. This can encourage consumer spending, business investment, and economic growth, while also weakening USD and making exports more competitive.
Lower rates can boost the stock market and housing demand but may also lead to inflation, reduced savings returns, and asset bubbles if not managed carefully.
What time is the Fed rate decision?
The Federal Reserve's next interest rate decision is scheduled for September 17th, 2025, at 2:00 PM Eastern Time (ET), which corresponds to 6:00 PM Coordinated Universal Time (UTC).
Following the announcement, Fed Chair Jerome Powell will hold a press conference at 2:30 PM ET (6:30 PM UTC) to discuss the decision and provide insights into the Fed's economic outlook.
When will the Fed lower interest rates?
As of the July 29–30, 2025 FOMC meeting, the Federal Reserve (Fed) held the federal funds rate steady at 4.25%–4.50% and gave no clear signal on when rate cuts might begin.
While some market participants had anticipated a potential cut in September, Chair Jerome Powell’s post-meeting comments cast doubt on that timeline, causing the probability of a September cut to fall below 50%.
Although the Fed’s earlier projections still suggest two quarter-point cuts by the end of 2025, officials emphasised that any decision will depend on future economic data. With inflation showing signs of easing but uncertainty lingering over tariffs and labor market strength, the Fed remains cautious, stating that no firm plans for rate reductions have been made.
How often does the Fed change interest rates?
The Federal Reserve does not change interest rates on a fixed schedule but rather adjusts them as needed based on economic conditions. The FOMC meets eight times per year to assess inflation, employment, and overall economic stability, and interest rate decisions are made during these meetings.
In some years, the Fed may leave rates unchanged, while in others, it may increase or decrease rates multiple times depending on economic trends.
For example, during high inflation periods, the Fed tends to raise rates to slow the economy, while during economic downturns, it cuts rates to stimulate growth. The frequency of rate changes varies based on economic data, financial stability, and the Fed’s monetary policy goals.
What is the US bank interest rate?
Federal Reserve (Fed) interest rate
- The target federal funds rate remains at 4.25% – 4.50% as of the July 29-30, 2025 FOMC meeting
- The effective federal funds rate (EFFR) (the actual overnight borrowing rate between banks) has remained steady at approximately 4.33%, reflecting no change in the broader policy stance.
- This rate represents the daily volume-weighted median of overnight loans between U.S. banks and closely tracks the midpoint of the Federal Reserve’s target range of 4.25%–4.50%, established during the July 29–30 FOMC meeting.
Federal Funds Rate history (1990 - present)
See below for historical interest rate data, showing how the Federal Funds Rate has changed over time.
