Federal Funds Interest Rate since 1981 & Economic Interventions by Federal Reserve Bank*
Updated September 17, 2025
In September 2024, the Fed reduced the rate by a half point, and then by a quarter point in November and December. This past September, the rate was reduced for the first time in 2025 by another quarter point. Further cuts are expected.
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
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
2019, 2020, 2021: With the pandemic, the Fed drops the rate to effectively zero
6
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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