Fed Lowers Target Rate To 1%
The Federal Reserve cut its target interest rate by 50 basis points Wednesday to 1%, the lowest level in four years, warning that economic activity has “slowed markedly” on the heels of declining consumer spending. (NYT)
Earlier Wednesday, former Dallas Federal Reserve President Bob McTeer argued that a cut would be mere window dressing. But other economists said fear and uncertainty in the markets is too great to risk leaving rates unchanged. They cautioned further credit deterioration could force the target rate below 1% later this year or in early 2009.
Meanwhile, Pimco’s Chief Investment Officer Bill Gross said the Federal Reserve’s acknowledgment of slowing U.S. exports signals the whole world is caught in the crisis. “Not only the U.S. but other central banks must go low and stay low,” he concluded.
Sources:
FOMC Statement (Federal Reserve)
Do We Need A Rate Cut? Former Fed Officials Weigh In (CNBC)
Fed Heads Toward Uncharted Territory (CNN Money)
Aggressive Fed Cuts Key Rate By A Half-Point (NYT)
Pimco’s Gross: Rates To Hold Steady Or Decline More (CNBC)
Recommended:
A Rate of Zero Percent From the Fed? (NYT)
Fed Cut Won’t Help Lending Much (Forbes)
A 50 Basis Point Cut Is Just For Show (News N Economics)
With Rate Cuts, FOMC Returns to Scene Of The Crime (Real Time Economics)
Helicopter Ben Makes Good On A Nickname (Bubble Meter)
Intended Federal Funds Rate (Federal Reserve)
| Change (basis points) |
|||
|---|---|---|---|
| Date | Increase | Decrease | Rate |
2008 |
|||
| October 29 | … | 50 | 1 |
| October 8 | … | 50 | 1.5 |
| April 30 | … | 25 | 2.00 |
| March 18 | … | 75 | 2.25 |
| January 30 | … | 50 | 3.00 |
| January 22 | … | 75 | 3.50 |
2007 |
|||
| December 11 | … | 25 | 4.25 |
| October 31 | … | 25 | 4.50 |
| September 18 | … | 50 | 4.75 |
2006 |
|||
| June 29 | 25 | … | 5.25 |
| May 10 | 25 | … | 5.00 |
| March 28 | 25 | … | 4.75 |
| January 31 | 25 | … | 4.50 |
2005 |
|||
| December 13 | 25 | … | 4.25 |
| November 1 | 25 | … | 4.00 |
| September 20 | 25 | … | 3.75 |
| August 9 | 25 | … | 3.50 |
| June 30 | 25 | … | 3.25 |
| May 3 | 25 | … | 3.00 |
| March 22 | 25 | … | 2.75 |
| February 2 | 25 | … | 2.50 |
2004 |
|||
| December 14 | 25 | … | 2.25 |
| November 10 | 25 | … | 2.00 |
| September 21 | 25 | … | 1.75 |
| August 10 | 25 | … | 1.50 |
| June 30 | 25 | … | 1.25 |
2003 |
|||
| June 25 | … | 25 | 1.00 |
2002 |
|||
| November 6 | … | 50 | 1.25 |
2001 |
|||
| December 11 | … | 25 | 1.75 |
| November 6 | … | 50 | 2.00 |
| October 2 | … | 50 | 2.50 |
| September 17 | … | 50 | 3.00 |
| August 21 | … | 25 | 3.50 |
| June 27 | … | 25 | 3.75 |
| May 15 | … | 50 | 4.00 |
| April 18 | … | 50 | 4.50 |
| March 20 | … | 50 | 5.00 |
| January 31 | … | 50 | 5.50 |
| January 3 | … | 50 | 6.00 |
2000 |
|||
| May 16 | 50 | … | 6.50 |
| March 21 | 25 | … | 6.00 |
| February 2 | 25 | … | 5.75 |
1999 |
|||
| November 16 | 25 | … | 5.50 |
| August 24 | 25 | … | 5.25 |
| June 30 | 25 | … | 5.00 |
1998 |
|||
| November 17 | … | 25 | 4.75 |
| October 15 | … | 25 | 5.00 |
| September 29 | … | 25 | 5.25 |
1997 |
|||
| March 25 | 25 | … | 5.50 |
1996 |
|||
| January 31 | … | 25 | 5.25 |
1995 |
|||
| December 19 | … | 25 | 5.50 |
| July 6 | … | 25 | 5.75 |
| February 1 | 50 | … | 6.00 |
1994 |
|||
| November 15 | 75 | … | 5.50 |
| August 16 | 50 | … | 4.75 |
| May 17 | 50 | … | 4.25 |
| April 18 | 25 | … | 3.75 |
| March 22 | 25 | … | 3.50 |
| February 4 | 25 | … | 3.25 |
1992 |
|||
| September 4 | … | 25 | 3.00 |
| July 2 | … | 50 | 3.25 |
| April 9 | … | 25 | 3.75 |
1991 |
|||
| December 20 | … | 50 | 4.00 |
| December 6 | … | 25 | 4.50 |
| November 6 | … | 25 | 4.75 |
| October 31 | … | 25 | 5.00 |
| September 13 | … | 25 | 5.25 |
| August 6 | … | 25 | 5.50 |
| April 30 | … | 25 | 5.75 |
| March 8 | … | 25 | 6.00 |
| February 1 | … | 50 | 6.25 |
| January 9 | … | 25 | 6.75 |
1990 |
|||
| December 18 | … | 25 | 7.00 |
| December 7 | … | 25 | 7.25 |
| November 13 | … | 25 | 7.50 |
| October 29 | … | 25 | 7.75 |
| July 13 | … | 25 | 8.00 |
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