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In an unscheduled meeting on August 17 the Fed "temporarily" reduced the spread between the primary credit rate and the federal funds rate to 50 basis points from the 100-point spread established in January 2002. Official statement, 2007-08-07, Official statement, 2007-08-10, Official statement, 2007-08-17. August 7, 2007 5.25% 6.25% 10–0
Understanding the Fed's key interest rate, the federal funds rate. ... Rate cuts 2001-2003. Meeting date. Rate change. Target. Jan. 3, 2001: Emergency meeting-50 basis points. 6 percent.
In August 2007, Committee announced that "downside risks to growth have increased appreciably," a signal that interest rate cuts might be forthcoming. [4] Between 18 September 2007 and 30 April 2008, the target for the Federal funds rate was lowered from 5.25% to 2% and the discount rate was lowered from 5.75% to 2.25%, through six separate actions.
A low federal funds rate makes investments in developing countries such as China or Mexico more attractive. A high federal funds rate makes investments outside the United States less attractive. The long period of a very low federal funds rate from 2009 forward resulted in an increase in investment in developing countries.
The unemployment rate dipped to 4.1% from 4.2%, also beating expectations. "Given a resilient labor market, we now think the Fed cutting cycle is over," BofA predicted. Economic activity is robust.
See Interest Rates Over the Last 100 Years. Find out how history affects today's rates and what it means for you.
The Federal Reserve, Treasury, and Securities and Exchange Commission took several steps on September 19, 2008, to intervene in the crisis caused by the late-2000s recession. To stop the potential run on money market mutual funds, the Treasury also announced that same day a new $50 billion program to insure the investments, similar to the ...
The Federal Reserve cut interest rates for the second consecutive meeting on Thursday but this time by a smaller quarter of a percentage point, as inflation continues cooling and a slowdown in the ...