Federal Funds Rate History (1955-2025)
The Federal Reserve interest rate is the most important number in finance — it affects everything from mortgage rates to stock market valuations.
Key Periods
- 1981 (19%): Paul Volckers war on inflation. The highest fed funds rate in history. Triggered a severe recession but broke the back of double-digit inflation.
- 2003-2004 (1%): Post-dot-com recession lows. Rates held at 1% for 12 months, fueling the housing bubble.
- 2008-2015 (0-0.25%): Zero Interest Rate Policy (ZIRP) after the Global Financial Crisis. Rates stayed near zero for 7 years.
- 2020-2021 (0.25%): Pandemic-era emergency cuts.
- 2022-2023 (5.5%): Fastest hiking cycle in 40 years to combat post-pandemic inflation.