Fitted Instantaneous Forward Rate 3 Years Hence
This dataset tracks fitted instantaneous forward rate 3 years hence over time.
Latest Value
3.69
Year-over-Year Change
-5.90%
Date Range
1/2/1990 - 8/1/2025
Summary
The Fitted Instantaneous Forward Rate 3 Years Hence is a measure of long-term interest rate expectations. It provides insight into market participants' views on the future path of monetary policy and inflation.
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 economic indicator represents the implied forward interest rate 3 years in the future, as derived from the Treasury yield curve. It is used by policymakers and analysts to gauge inflation and growth expectations over the medium term.
Methodology
The data is calculated by the Federal Reserve based on a model that fits a smooth yield curve to Treasury security prices.
Historical Context
The forward rate is a key input for monetary policy decisions and can signal market views on the economic outlook.
Key Facts
- The forward rate has averaged 2.7% over the past 20 years.
- It reached a high of 5.2% in 2007 before the Great Recession.
- The forward rate is an important input for the Federal Reserve's policy decisions.
FAQs
Q: What does this economic trend measure?
A: The Fitted Instantaneous Forward Rate 3 Years Hence measures the market's expected interest rate 3 years in the future, as implied by the Treasury yield curve.
Q: Why is this trend relevant for users or analysts?
A: This forward rate provides insight into market views on the future path of monetary policy and inflation, which is crucial information for policymakers, investors, and economic analysts.
Q: How is this data collected or calculated?
A: The Federal Reserve calculates the forward rate using a model that fits a smooth yield curve to the prices of Treasury securities.
Q: How is this trend used in economic policy?
A: The forward rate is a key input for monetary policy decisions, as it signals the market's expectations about the future direction of interest rates and inflation.
Q: Are there update delays or limitations?
A: The forward rate data is published by the Federal Reserve on a daily basis, with no significant delays. However, the model-based calculation may be subject to some limitations in accurately capturing market expectations.
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Fitted Instantaneous Forward Rate 1 Year Hence
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Citation
U.S. Federal Reserve, Fitted Instantaneous Forward Rate 3 Years Hence (THREEFF3), retrieved from FRED.