USA Interest Rate History and Trends: 2023 to 2024 Federal Reserve Decisions

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Source: Trading Economics
Publication Date: November 2024
Region: Worldwide
Survey time period: November 2024
Note: The Federal Reserve’s target rate is presented as a range, with the upper bound often cited in reports. For instance, a 5% rate means the target range is actually 4.75% to 5%.

USA Interest Rate Trends from 2023 to Present:

The U.S. Federal Reserve’s interest rates have followed an upward trajectory throughout 2023, aiming to curb inflation and stabilize the economy. The Federal Reserve’s target rate is typically presented as a range, and this range has gradually increased over the past year.

1. January 2023: The Federal Reserve’s interest rate was between 4.25% to 4.5%.
2. February to March 2023: The rate rose to 4.5% to 4.75% as the Fed continued tightening monetary policy.
3. May 2023: The interest rate reached 5% to 5.25%, marking one of the larger rate hikes of the year, with the central bank aiming to curb persistent inflation.
4. June 2023: The rate remained within the range of 5% to 5.25%, where it stayed stable through much of the second half of the year.
5. July 2023: A continued push to address inflation took the rate to 5.25% to 5.5%.
6. August to September 2024: The rate was adjusted slightly downward to 5% to 5.25%, reflecting some moderation in inflation and the Fed’s cautious approach to economic growth.
7. October to November 2024: The interest rate dropped further to the current range of 4.75% to 5%, suggesting that the Fed is starting to ease its aggressive stance as inflation shows signs of slowing.

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Summary:

From January 2023 to November 2024, the Federal Reserve has raised interest rates steadily, peaking at 5% to 5.25% mid-2023, and then slightly adjusted it downward to 4.75% to 5% by late 2024. These adjustments reflect the Fed’s strategy to balance controlling inflation while avoiding undue economic slowdown.