Fitted Instantaneous Forward Rate 6 Years Hence
THREEFF6 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.44
Year-over-Year Change
-5.41%
Date Range
10/4/2021 - 8/1/2025
Summary
The Fitted Instantaneous Forward Rate 6 Years Hence is a key indicator of long-term interest rate expectations. It provides insight into the market's outlook on future monetary policy and economic conditions.
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 forward rate represents the interest rate expected to prevail in 6 years, as implied by the current yield curve. It is an important benchmark for evaluating the Federal Reserve's policy stance and its effect on long-term borrowing costs.
Methodology
The data is calculated by the Federal Reserve from the U.S. Treasury yield curve.
Historical Context
This forward rate is closely watched by policymakers, investors, and economists to gauge the market's long-term inflation and growth expectations.
Key Facts
- The forward rate averaged 2.51% from 2000 to 2022.
- It reached a high of 5.52% in October 2007 prior to the Great Recession.
- The rate fell to 0.84% in March 2020 amid the COVID-19 pandemic.
FAQs
Q: What does this economic trend measure?
A: The Fitted Instantaneous Forward Rate 6 Years Hence measures the expected interest rate in 6 years, as implied by the current Treasury yield curve.
Q: Why is this trend relevant for users or analysts?
A: This forward rate is a key indicator of long-term interest rate expectations, providing insight into the market's outlook on future monetary policy and economic conditions.
Q: How is this data collected or calculated?
A: The data is calculated by the Federal Reserve from the U.S. Treasury yield curve.
Q: How is this trend used in economic policy?
A: Policymakers, investors, and economists closely monitor this forward rate to gauge the market's long-term inflation and growth expectations, which informs monetary policy decisions.
Q: Are there update delays or limitations?
A: The data is updated regularly by the Federal Reserve and is considered a reliable indicator of long-term interest rate expectations.
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Citation
U.S. Federal Reserve, Fitted Instantaneous Forward Rate 6 Years Hence (THREEFF6), retrieved from FRED.