The average Federal Funds Rate from 1955 to 2023 is 4.62%

Quick Take

• The mean Federal Funds Rate from 1955-01-01 to 2023-05-17 is 4.62%. We are present successful a mean authorities of involvement rates.
• The contented present becomes the full indebtedness to GDP — which is astir 120% — truthful arsenic rates enactment elevated, it volition outgo much to work the interest.
• As it becomes much costly to work the debt, this volition devour into different sectors and shrink their pie, specified arsenic wellness attraction and education, and nine volition interruption down further.
• Looking retired to FY 2032. involvement costs are projected to deed $1.2 trillion, which volition beryllium the largest expenditure program, surpassing Medicaid ($789 billion) and defence ($990 billion).
• The lone mode would beryllium to turn GDP up of the indebtedness securities and liabilities, but that looks highly improbable — particularly with an aging colonisation and declining population.

GDP vs. interest: (Source: FRED)

Fed Funds: (Source: FRED)

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