The Federal Reserve's Fed Funds rate is expected to reach 2.5% by the end of 2016, according to the August NCUA Report.
As illustrated in the NCUA's graph shown at left (click on the graph to expand), Fed policymakers predicted short-term interest rates will begin rising at some point in 2015, with an average rate of 1% predicted by the group by year-end. The lowest rate predicted for 2015 was 0.25% and the highest was 3%.
If economic conditions remain robust, the group of Fed board members and bank presidents predicted the Fed Funds rate will rise to 2.5% by the end of 2016. The lowest prediction was 0.5% and the highest was 4.25%.
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