Recent fed rate history

1999: GDP = 4.8%, Unemployment = 6%, Inflation = 2.7%

 

Jun 30	5.0%	Raised rates.
Aug 24	5.25%
Nov 16	5.5%

 

2000: GDP = 4.1%, Unemployment = 6%, Inflation = 3.4%

Feb 2	5.75%	Raised rates despite stock market decline in March
Mar 21	6.0%	^
May 16	6.5%	^

 

2001: GDP = 1.0%, Unemployment = 6%, Inflation = 1.6%

Jan 3	6.0%	Bush took office.
Jan 31	5.5%	^
Mar 20	5.0%	Recession began. Fed lowered rates to fight it.
Apr 18	4.5%	^
May 15	4.0%	^
Jun 27	3.75%	EGTTRA tax rebate enacted.
Aug 21	3.5%
Sep 17	3.0%	9/11 attacks.
Oct 2	2.5%	Afghanistan War.
Nov 6	2.0%	Recession ended.
Dec 11	1.75%

 

2002: GDP = 1.7%, Unemployment = 6%, Inflation = 2.4%

Nov 6	1.25%	Fed lowered rates to fight sluggish growth.

 

2003: GDP = 2.9%, Unemployment = 6%, Inflation = 1.9%

Jun 25	1.00%	JGTRRA tax cuts enacted.

 

2004: GDP = 3.8%, Unemployment = 6%, Inflation = 3.3%

Jun 30	1.25%	Low rates pushed interest-only loans. .
Aug 10	1.5%	Helped cause Subprime Mortgage Crisis
Sep 21	1.75%	^
Nov 10	2.0%	^
Dec 14	2.25%	^

 

2005: GDP = 3.5%, Unemployment = 6%, Inflation = 3.4%

Feb 2	2.5%	Borrowers could not afford mortgages when rates reset in 3rd year.
Mar 22	2.75%	^
May 3	3.0%	^
Jun 30	3.25%	^
Aug 9	3.5%
Sep 20	3.75%
Nov 1	4.0%
Dec 13	4.25%

 

Fed Chair Ben Bernanke (February 2006—January 2014)

2006: GDP = 2.9%, Unemployment = 6%, Inflation = 2.5% 

Jan 31	4.5%	Raised to cool housing market bubble. More homeowners default.
Mar 28	4.75%	^
May 10	5.0%	^
Jun 29	5.25%	^

 

2007: GDP = 1.9%, Unemployment = 6%, Inflation = 4.1%

Sep 18	4.75%	Home sales fell.
Oct 31	4.5%
Dec 11	4.25%	LIBOR rose. Stock market peaked. Recession began.

 

2008: GDP = -0.1%, Unemployment = 6%, Inflation = 0.1%

Jan 22	3.5%
Jan 30	3.0%	Tax rebate.
Mar 18	2.25%	Bear Stearns bailout.
Apr 30	2.0%	Lehman fails. Bank bailout approved. AIG bailout.
Oct 8	1.5%	^
Oct 29	1.0%	^
Dec 16	0.25%	Effectively zero. Lowest fed fund rates possible

• Between2008 and 2015, the Fed kept the rate at zero. Recession ended in June 2009.

Fed Chair Janet Yellen (February 2014—February 2018)

2015: GDP = 2.9%, Unemployment = 6%, Inflation = 0.7% 

Dec 17	0.5%	Growth stabilized so Fed began raising rates.

 

2016: GDP = 1.6%, Unemployment = 4.6%, Inflation = 2.1% 

Dec 15	0.75%	Fed maintained steady increase in rates.

 

2017: GDP = 2.2%, Unemployment = 4.1%, Inflation = 2.1%

Mar 16	1.0%	Fed was steady on its path of normalizing its benchmark rate.
Jun 15	1.25%	^
Dec 14	1.5%	^

 

Fed Chair Jerome Powell (Since February 2018)

2018: GDP = 2.95, Unemployment = 3.9%, Inflation = 1.9%

Mar 22	1.75%	Fed projects steady growth.
Jun 14	2.0%	^
Sep 27	2.25%	^
Dec 19	2.5%	Fed stopped raising rates in 2019.