National Real Estate Insights December 2024

Federal Funds Interest Rate since 1981 & Economic Interventions by Federal Reserve Bank*

After 11 increases from March 2022, the Federal Reserve Bank kept the benchmark federal-funds rate unchanged from August 2023 to August 2024. On 9/18/24, the Fed reduced the rate by a half point, and by a quarter point on 11/7/24 & 12/18/24.

20

◄ Early 1980’s: Fed aggressively raises fed funds target rate to lower inflation rate

18

16

Early 1990 ’s recession: Fed drops target interest rate 18 times, 1990-92

Updated December 18, 2024

14

2022/2023/2024: Acting to counter inflation, Fed increases target rate 11 times, then pauses 8/2023 – 8/2024

Dotcom crash, 9/11 attack: Fed drops fed fund rate 12 times, 2001-02

12

Subprime crash: Fed drops rate 10 times to effectively zero in 2007-08

10

8

6

2019, 2020, 2021: The Fed drops rate to effectively zero

Junk bond boom

Dotcom boom

4

High-tech & pandemic booms

2

Subprime boom

0

* Per Federal Reserve Bank of St. Louis and New York; https://fred.stlouisfed.org/series/FEDFUNDS; Last reading per https://www.newyorkfed.org/markets/reference-rates/effr. Other data referenced from sources deemed reliable but may contain errors and subject to revision.

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