A History of the Fed’s Moves on Interest Rates

Alan Greenspan, Ben Bernanke and the Federal Reserve’s Moves on Interest Rates.

The Fed’s Moves on Interest Rates.

Interest Rate History

Raising:

In September 1992 the Fed Funds Rate = 3.00 %

Sept 92 = 3.00

Feb 94 = 3.25 % (25 BP - 18 months)

Mar 94 = 3.50 % (25 BP - 1 month)

Apr 94 = 3.75 % (25 BP - 1 month)

May 94 = 4.25% (50 BP – 1 month)

Aug 94 = 4.75% (50 BP – 3 months)

Nov 94 = 5.50 % (75 BP – 3 months)

Feb 95 = 6.00% (50 BP – 3 months)

Total 300 BP rise in 30 months

Lowering:

Feb 95 = 6.00%

July 95 = 5.75% (25 BP – 5 months)

Dec 95 = 5.50% (25 BP – 5 months)

Jan 96 = 5.25% (25BP –1 month)

Total 75 BP lower in 11 months

Raising:

Jan 96 = 5.25%

Mar 97 = 5.50 (25 BP – 14 months)

Total 25 BP rise in 14 months

Lowering:

Mar 97 = 5.50%

Sept 98 = 5.25% (25BP – 18 months)

Oct 98 = 5.00% (25 BP – 1 month)

Nov 98 = 4.75% (25 BP – 1 month)

Total 75 BP lower in 20 months

Raising:

Nov 98 = 4.75%

June 99 = 5.00% (25 BP – 6 months)

Aug 99 = 5.25% (25 BP – 2 months)

Nov 99 = 5.50% (25 BP – 3 months)

Feb 00 = 5.75%   (25 BP – 3 months)

Mar 00 = 6.00% (25 BP – 1 month)

May 00 = 6.50% (50 BP – 2 months)

Total 175 BP rise in 17 months

Lowering:

May 00 = 6.50%

Jan 01 = 6.00% (50 BP - 7 months)

Jan 01 = 5.50% (50BP – 1 month)

Mar 01 = 5.00% (50 BP – 1 month)

Apr 01 = 4.50% (50 BP – 1 month)

May 01 = 4.00% (50 BP – 1 month)

June 01 = 3.75% (25BP – 1 month)

Aug 01 = 3.50% (25BP – 2 months)

Sep 01 = 3.00% (50BP – 1 month)

Oct 01 = 2.50% (50BP – 1 month)

Nov 01 = 2.00% (50BP – 1 month)

Dec 01 = 1.75% (25BP – 1 month)

Nov 02 = 1.25% (50BP – 11 months)

June 03 = 1.00% (25BP – 8 months)

Total 550 BP lower in 37 months

Raising:

June 03 = 1.00%

June 04 = 1.25% (25 BP – 12 months)

Aug 04 = 1.50% (25BP – 2 months)

Sep 04 = 1.75% (25BP – 1 month)

Nov 04 = 2.00% (25BP – 2 months)

Dec 04 = 2.25% (25BP – 1 month)

Feb 05 = 2.50% (25BP – 2 months)

Mar 05 = 2.75% (25BP – 1 month)

May 05 = 3.00% (25BP – 2 months)

June 05 = 3.25% (25BP – 1 month)

Aug 05 = 3.50% (25BP – 2 months)

Sep 05 = 3.75% (25BP – 1 month)

Nov 05 = 4.00% (25BP – 2 months)

Dec 05 = 4.25% (25BP – 1 month)

Feb 06 = 4.50% (25BP – 2 months)

Mar 06 = 4.75% (25BP – 1 month)

May 06 = 5.00% (25BP – 2 months)

June 06 = 5.25% (25BP – 1 month)

Total 425 BP rise in 36 months

Lowering:

June 06 = 5.25%

Sep 07 = 4.75% (50 BP - 15 months)

Oct 07 = 4.50% (25BP - 1 month)

Dec 07 = 4.25% (25BP - 2 months)

Jan 08 = 3.50% (75BP – 1 month)

Jan 08 = 3.00% (50BP – 1 month)

Mar 08 = 2.25% (75BP – 2 months)

Apr 08 = 2.00% (25BP – 1 month)

Oct 08 = 1.50% (50BP – 5 months)

Oct 08 = 1.00% (50BP – 1 month)

Dec 08 = 0.25 (100BP – 2 months)

Total 525 BP lower in 31 months

Ben S. Bernanke Biography / Profile from the Federal Reserve Board

Bond Strategist

 Last Updated – 12/16/08