Federal Funds Rate - 62 Year Historical Chart Shows the daily level of the federal funds rate back to 1954. The fed funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis.
The fed funds rate reached a high of 20% in 1980 to combat double-digit inflation. 3 Inflation began to skyrocket beginning in March 1973 when President Richard Nixon disengaged the dollar from the gold standard. Inflation increased from 4.7% to 12.3% in December 1974. 4 The Fed increased the fed funds rate from 7% in March to 11% by August.
That’s partially because the federal funds rate — a key borrowing benchmark set by the Federal Reserve — has remained below its historic average for the past 16 years. In fact, the Fed’s key rate...
- Click Here for the Current Fed Funds Target Rate - - Click Here for the Fed Funds Target Rate CHART - Change Date Rate (%) January 1, 1990 8.25 July 13, 1990 8.00 October 29, 1990 7.75 November 14, 1990 7.50 December 7, 1990 7.25 December 19, 1990 7.00 January 8, 1991 6.75 February 1, 1991 6.25 March 8, 1991 6.00 April 30, 1991 5.75
Fed funds rate high: 20% in 1980 and 1981 The federal funds rate touched its all-time high of 20% at the end of 1980 and again in the first half of 1981, when it fluctuated between 18% and 20%. The fed funds rate was so high in 1980 and 1981 as a response to unusually high inflation that had been on the rise since the 1970s.
Fed Delivers Biggest Rate Hike since 2000 The Federal Reserve raised the target for the fed funds rate by half a point to 0.75%-1% during its May 2022 meeting, the second consecutive rate hike and the biggest rise in borrowing costs since 2000, aiming to tackle soaring inflation.
Averages of daily figures. For additional historical federal funds rate data, please see Daily Federal Funds Rate from 1928-1954 . The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.