FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, High
FEDTARCTH • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
3.60
Year-over-Year Change
-18.18%
Date Range
1/1/2025 - 1/1/2027
Summary
The FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, High represents the upper range of projected interest rates by Federal Reserve officials. This metric provides critical insight into potential monetary policy trajectories and market expectations for future borrowing costs.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This projection reflects the Federal Open Market Committee's highest anticipated federal funds rate target range for the upcoming years. Economists and investors closely analyze this metric to understand potential monetary policy tightening and economic growth expectations.
Methodology
The data is collected through confidential surveys and projections made by FOMC members during their regular economic assessment meetings.
Historical Context
This trend is crucial for guiding investment strategies, informing market expectations, and providing transparency about potential future monetary policy adjustments.
Key Facts
- Represents the highest projected federal funds rate among FOMC members
- Updated quarterly during FOMC economic projection meetings
- Serves as a critical indicator of potential future monetary policy direction
FAQs
Q: What does the high central tendency of the Fed Funds Rate indicate?
A: It represents the upper range of interest rate projections by Federal Reserve officials, suggesting potential maximum monetary tightening scenarios.
Q: How often is this projection updated?
A: The projection is typically updated quarterly during the Federal Open Market Committee's economic assessment meetings.
Q: Why do investors care about this projection?
A: It provides insights into potential future borrowing costs and helps investors anticipate monetary policy changes that could impact financial markets.
Q: How reliable are these projections?
A: While based on expert analysis, these are forecasts that can change based on evolving economic conditions and are not guaranteed predictions.
Q: What factors influence these rate projections?
A: Factors include inflation rates, employment data, economic growth, global economic conditions, and overall financial market stability.
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Citation
U.S. Federal Reserve, FOMC Summary of Economic Projections for the Fed Funds Rate, Central Tendency, High [FEDTARCTH], retrieved from FRED.
Last Checked: 8/1/2025