In the USA the Federal Reserve Rate is the tool to control inflation. When commercial banks lends to other institutions overnight at the rate which is known for Fed rate. This is the short term interest rate which affects the other rates like mortgage, auto loans or other corporate borrowing costs. These rates are controlled by the FOMC. The Fed rates encourage economic activity through lowering the interest rates. This US FED Interest Rate Cut 2024 makes the borrowings cheaper and this leads to increased spending and investment. When the Fed needs to cool down the economy or combat the rising or high inflation then these rates may rise. This can make the borrowings more expensive and this can discourage excessive spending and borrowing.
US FED Interest Rate Cut 2024
The Fed adjusts the rates, the borrowing costs for the consumer rise or fall. Lower Rates can spur spending on big ticket items like home, cars while higher rates can deter such expenditures. When the borrowing is affordable the businesses are more likely to hire new employees which reduces the unemployment and may drive up wages. It means that the Fed rate also affects the US employment and wages. The FOMC in the US meets eight times in a year and in that meeting they review the economic data and set the monetary policy. The last meeting of the FOMC was held on 7th November 2024 in which the FOMC rate was cut by 0.25%. The FOMC lowers the rate from 5% to 4.75%. This means that now in the US the borrowing becomes cheaper. Let’s know more on this US FED Interest Rate Cut 2024.
US Fed Rates 2024- Overview
| Title of the Post | US FED Interest Rate Cut 2024 |
| Year | 2024 |
| Name of the Country | USA |
| Name of the Rate | Federal Funds Rate |
| Controlled By | FOMC |
| Decision Frequency | 8 Times in a year |
| Latest Change On | 7th November 2024 |
| FED Current Rate | 4.75% |
| Post Category | Finance |
| Official Web Page | www.federalreserve.gov |
FED Rates Latest Cut 2024
On the 7th November 2024, the Federal Reserve implemented the policy shift by cutting the federal fund rate by 0.25%. This means that now the fed rate is cut down from 5% to 4.75%. The reduction in the Fed rates is done to cool the inflation. This Fed reduced rate will reduce the cost for the borrowings. This means the lower Fed rates will lead to lower lending rate on the loans such as auto loans, personal loans. With the lower rates the consumer spending will be raised. This means that now the US consumers can invest more.
FED Rates History
| FOMC Meeting Held On | Federal Fund Rate |
| 7th November 2024 | 4.75% |
| 18th September 2024 | 4.75% to 5.00% |
| 26th July 2023 | 5.25% to 5.50% |
| 3rd May 2023 | 5.00% to 5.25% |
| 22nd March 2023 | 4.75% to 5.00% |
| 1st February 2023 | 4.50% to 4.75% |
| 14th December 2022 | 4.25% to 4.50% |
| 2nd November 2022 | 3.75% to 4.00% |
| 21st September 2022 | 3.00% to 3.25% |
| 27th July 2022 | 2.25% to 2.50% |
| 16th June 2022 | 1.50% to 1.75% |
| 5th May 2022 | 0.75% to 1.00% |
| 17th March 2022 | 0.25% to 0.50% |
| 16th March 2020 | 0% to 0.25% |
| 3rd March 2020 | 1.0% to 1.25% |
| 31st October 2019 | 1.50% to 1.75% |
| 19th September 2019 | 1.75% to 2.00% |
| 1st August 2019 | 2.00% to 2.25% |
| 20th December 2018 | 2.25% to 2.50% |
| 27th September 2018 | 2.0% to 2.25% |
| 14th June 2018 | 1.75% to 2.0% |
| 22nd March 2018 | 1.50% to 1.75% |
| 14th December 2017 | 1.25% to 1.50% |
| 15th June 2017 | 1.00% to 1.25% |
| 16th March 2017 | 0.75% to 1.00% |
| 15th December 2016 | 0.5% to 0.75% |
| 17th December 2015 | 0.25% to 0.50% |
| 16th December 2008 | 0% to 0.25% |
| 29th October 2008 | 1.00% |
| 8th October 2008 | 1.50% |
| 30th April 2008 | 2.00% |
| 18th March 2008 | 2.25% |
| 30th January 2008 | 3.00% |
| 22nd January 2008 | 3.50% |
| 11th December 2007 | 4.25% |
| 31st October 2007 | 4.50% |
| 18th September 2007 | 4.75% |
| 29th June 2006 | 5.25% |
| 10th May 2006 | 5.00% |
| 28th March 2006 | 4.75% |
| 31st January 2006 | 4.50% |
| 13th December 2005 | 4.25% |
| 1st November 2005 | 4.00% |
| 20th September 2005 | 3.75% |
| 9th August 2005 | 3.50% |
| 30th June 2005 | 3.25% |
| 3rd May 2005 | 3.00% |
| 22nd March 2005 | 2.75% |
| 2nd February 2005 | 2.50% |
| 14th December 2004 | 2.25% |
| 10th November 2004 | 2.00% |
| 21st September 2004 | 1.75% |
| 10th August 2004 | 1.50% |
| 30th June 2004 | 1.25% |
| 25th June 2003 | 1.00% |
| 6th November 2002 | 1.00% |
| 11th December 2001 | 1.75% |
| 6th November 2001 | 2.00% |
| 2nd October 2001 | 2.50% |
| 17th September 2001 | 3.00% |
| 21st August 2001 | 3.50% |
| 27th June 2001 | 3.75% |
| 15th May 2001 | 4.00% |
| 18th April 2001 | 4.50% |
| 20th March 2001 | 5.00% |
| 31st January 2001 | 5.50% |
| 3rd January 2001 | 6.00% |
| 16th May 2000 | 6.50% |
| 21st March 2000 | 6.00% |
| 2nd February 2000 | 5.75% |
| 16th November 1999 | 5.50% |
| 24th August 1999 | 5.25% |
| 30th June 1999 | 5.00% |
| 17th November 1998 | 4.75% |
| 15th October 1998 | 5.00% |
| 29th September 1998 | 5.25% |
| 25th March 1997 | 5.50% |
| 31st January 1996 | 5.25% |
| 19th December 1995 | 5.50% |
| 6th July 1995 | 5.75% |
| 1st February 1995 | 6.00% |
| 15th November 1994 | 5.50% |
| 16th August 1994 | 4.75% |
| 17th May 1994 | 4.25% |
| 18th April 1994 | 3.75% |
| 22nd March 1994 | 3.50% |
| 4th February 1994 | 3.25% |
| 4th September 1992 | 3.00% |
| 2nd July 1992 | 3.25% |
| 9th April 1992 | 3.75% |
| 20th December 1991 | 4.00% |
| 6th December 1991 | 4.50% |
| 6th November 1991 | 4.75% |
| 31st October 1991 | 5.00% |
| 13th September 1991 | 5.25% |
| 6th August 1991 | 5.50% |
| 30th April 1991 | 5.75% |
| 8th March 1991 | 6.00% |
| 1st February 1991 | 6.25% |
| 9th January 1991 | 6.75% |
| 18th December 1990 | 7.00% |
| 7th December 1990 | 7.25% |
| 13th November 1990 | 7.50% |
| 29th October 1990 | 7.75% |
| 13th July 1990 | 8.00% |
Fact Check: US FED Interest Rate Cut 2024
As per the latest FOMC the Federal Reserve cuts the Fed rates by 0.25%. This means that the Fed lowers the rates from 5.00% to 4.75%. This will make the consumer borrowings more cheaper and the more money supply will be in the country. The provided history for the US Fed rates is reliable. For more updates on Fed rates or its history the user can see the Federal Reserve official page.
FAQ Related To US FED Interest Rate Cut 2024
The FOMC controls the Fed rates.
To determine the rates, the Fed gets together eight times annually.
The borrowings become expensive which limits the money supply.
The borrowings become cheaper and raise the money supply.
The Fed rate is 4.75% at current time.
