The next Federal Reserve (Fed) interest rate decision is due on Wednesday, June 18, 2025 at 18:00 UTC. This will also include a Summary of Economic Projections.
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 current 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 third consecutive FOMC meeting without a rate change.
This decision reflects the Fed's cautious approach amid rising economic uncertainties, particularly those stemming from recent trade policies and tariffs.
What is the US interest rate today?
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 date is the next Federal Reserve interest rate meeting?
The next Federal Reserve interest rate meeting and decision is due on June 18th, 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 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 the U.S. dollar 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 June 18th, 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?
At the May 7, 2025, Federal Open Market Committee (FOMC) meeting, the Fed has maintained the federal funds rate at 4.25% to 4.50% since December 2024. While markets anticipate potential rate cuts later this year, the timing remains uncertain due to economic complexities.
Market participants are pricing in a high probability of a rate cut in the coming months, with futures markets suggesting a 70% chance of a reduction at the June meeting. However, the Federal Reserve has expressed caution, emphasising the need for more data to assess the economic impact of recent trade policies and inflation trends.
The next FOMC meeting is scheduled for June 17-18, 2025, where policymakers will evaluate the latest economic indicators to determine the appropriate monetary policy stance.
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.
Federal Funds Rate history (1990 - present)
See below for historical interest rate data, showing how the Federal Funds Rate has changed over time.
