Fitted Instantaneous Forward Rate 1 Year Hence
This dataset tracks fitted instantaneous forward rate 1 year hence over time.
Latest Value
3.63
Year-over-Year Change
-4.01%
Date Range
1/2/1990 - 8/1/2025
Summary
The Fitted Instantaneous Forward Rate 1 Year Hence measures the expected short-term interest rate one year from now, as implied by the current yield curve. This forward rate metric is a key indicator for monetary policy analysis and assessing the future path of interest rates.
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
The Fitted Instantaneous Forward Rate 1 Year Hence represents the interest rate that would equate the price of a one-year forward contract to the price of a one-year spot contract, given the current shape of the yield curve. It provides insights into market expectations of future short-term rates and helps policymakers evaluate the stance of monetary policy.
Methodology
The data is calculated based on a fitted yield curve model using market information on Treasury securities.
Historical Context
Central banks and analysts closely monitor the forward rate to understand the market's outlook on future monetary policy.
Key Facts
- The forward rate is a market-based estimate of future short-term interest rates.
- It helps assess the likely future path of monetary policy and short-term interest rates.
- The forward rate is a key input for fixed-income portfolio management and risk assessment.
FAQs
Q: What does this economic trend measure?
A: The Fitted Instantaneous Forward Rate 1 Year Hence measures the expected short-term interest rate one year from now, as implied by the current yield curve.
Q: Why is this trend relevant for users or analysts?
A: This forward rate metric provides insights into market expectations of future monetary policy and short-term interest rates, which is crucial for economic analysis and investment decisions.
Q: How is this data collected or calculated?
A: The data is calculated based on a fitted yield curve model using market information on Treasury securities.
Q: How is this trend used in economic policy?
A: Central banks and analysts closely monitor the forward rate to understand the market's outlook on future monetary policy and assess the appropriate stance of interest rates.
Q: Are there update delays or limitations?
A: The data is published regularly by the Federal Reserve, but may be subject to revisions and can be influenced by market liquidity and other factors.
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Similar THREEFF Trends
Fitted Instantaneous Forward Rate 10 Years Hence
THREEFF10
Fitted Instantaneous Forward Rate 2 Years Hence
THREEFF2
Fitted Instantaneous Forward Rate 3 Years Hence
THREEFF3
Fitted Instantaneous Forward Rate 4 Years Hence
THREEFF4
Fitted Instantaneous Forward Rate 5 Years Hence
THREEFF5
Fitted Instantaneous Forward Rate 6 Years Hence
THREEFF6
Citation
U.S. Federal Reserve, Fitted Instantaneous Forward Rate 1 Year Hence (THREEFF1), retrieved from FRED.