Change in Interest Rate
Interest Rate Cuts: 4.25% to 3.5%
Date:
January 22, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 75 basis point reduction in federal funds rate
Source:
Notes:
Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Interest Rate Cut: 3.5% to 3%
Date:
January 30, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 50 basis point reduction in federal funds rate.
Source:
Notes:
Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Interest Rate Cut: 3% to 2.25%
Date:
March 18, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 75 basis point reduction in federal funds rate.
Source:
Notes:
Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Interest Rate Cut: 2.25% to 2%
Date:
April 30, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 25 basis point reduction in federal funds rate.
Source:
Notes:
Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Interest Rate Cut: 2% to 1.5%
Date:
October 8, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 50 basis point reduction in federal funds rate coordinated with other central banks, including the Bank of Canada, the Bank of England, the European Central Bank, Sveriges Riksbank and the Swiss National Bank.
Source:
Notes:
Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Interest Rate Cut: 1.5% to 1%
Date:
October 29, 2008
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate 50 basis point reduction in federal funds rate.
Source:
Notes:
Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Interest Rate Changes
Who:
Fed
Policy Area:
Monetary Policy
Economic Target:
Financial Institutions
Economic Target:
Financial Institutions
Action Type:
Change in Interest Rate The federal funds rate is the interest rate at which one bank lends money, available at the Federal Reserve, to another financial institution. It is determined by the Federal Open Market Committee (FOMC), which meets eight times per year in order to set monetary policy, review current economic conditions, determe risks to economic growth and fiscal sustainability, and adjust the federal funds rate.
Notes:
Since 12/16/2008 the federal funds rate has been a range between 0% and .25%. Since that date, the above graph displays the federal funds rate as the average of the range, or .125%. Federal funds rate historical tables can be found here.
