Monday, 2 February 2015

US Federal Funds Rate

Q33: What will the minimum of US Federal Funds Target Range be at the end of 2015?
0.25% or lower: 25%
0.5% to 0.75%: 20%
1% to 1.25%: 20%
1.5% to 1.75%: 20%
2% or higher: 15%

The current US Federal Funds Target Range is 0% to 0.25%.  This rate is widely expected to rise in 2015.  The median appropriate rate at the end of the year according to FOMC participants should be 1%.    I am basing my estimates primarily on that, with a bit of bias towards lower rates (since the overnight rate has gone down in Canada).


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