1999: GDP = 4.8%, Unemployment = 6%, Inflation = 2.7%
| Jun 30 | 5.0% | Raised rates. |
|---|---|---|
| Aug 24 | 5.25% | |
| Nov 16 | 5.5% |
2000: GDP = 4.1%, Unemployment = 6%, Inflation = 3.4%
| Feb 2 | 5.75% | Raised rates despite stock market decline in March |
|---|---|---|
| Mar 21 | 6.0% | ^ |
| May 16 | 6.5% | ^ |
2001: GDP = 1.0%, Unemployment = 6%, Inflation = 1.6%
| Jan 3 | 6.0% | Bush took office. |
|---|---|---|
| Jan 31 | 5.5% | ^ |
| Mar 20 | 5.0% | Recession began. Fed lowered rates to fight it. |
| Apr 18 | 4.5% | ^ |
| May 15 | 4.0% | ^ |
| Jun 27 | 3.75% | EGTTRA tax rebate enacted. |
| Aug 21 | 3.5% | |
| Sep 17 | 3.0% | 9/11 attacks. |
| Oct 2 | 2.5% | Afghanistan War. |
| Nov 6 | 2.0% | Recession ended. |
| Dec 11 | 1.75% |
2002: GDP = 1.7%, Unemployment = 6%, Inflation = 2.4%
| Nov 6 | 1.25% | Fed lowered rates to fight sluggish growth. |
|---|
2003: GDP = 2.9%, Unemployment = 6%, Inflation = 1.9%
| Jun 25 | 1.00% | JGTRRA tax cuts enacted. |
|---|
2004: GDP = 3.8%, Unemployment = 6%, Inflation = 3.3%
| Jun 30 | 1.25% | Low rates pushed interest-only loans. . |
|---|---|---|
| Aug 10 | 1.5% | Helped cause Subprime Mortgage Crisis |
| Sep 21 | 1.75% | ^ |
| Nov 10 | 2.0% | ^ |
| Dec 14 | 2.25% | ^ |
2005: GDP = 3.5%, Unemployment = 6%, Inflation = 3.4%
| Feb 2 | 2.5% | Borrowers could not afford mortgages when rates reset in 3rd year. |
|---|---|---|
| Mar 22 | 2.75% | ^ |
| May 3 | 3.0% | ^ |
| Jun 30 | 3.25% | ^ |
| Aug 9 | 3.5% | |
| Sep 20 | 3.75% | |
| Nov 1 | 4.0% | |
| Dec 13 | 4.25% |
Fed Chair Ben Bernanke (February 2006—January 2014)
2006: GDP = 2.9%, Unemployment = 6%, Inflation = 2.5%
| Jan 31 | 4.5% | Raised to cool housing market bubble. More homeowners default. |
|---|---|---|
| Mar 28 | 4.75% | ^ |
| May 10 | 5.0% | ^ |
| Jun 29 | 5.25% | ^ |
2007: GDP = 1.9%, Unemployment = 6%, Inflation = 4.1%
| Sep 18 | 4.75% | Home sales fell. |
|---|---|---|
| Oct 31 | 4.5% | |
| Dec 11 | 4.25% | LIBOR rose. Stock market peaked. Recession began. |
2008: GDP = -0.1%, Unemployment = 6%, Inflation = 0.1%
| Jan 22 | 3.5% | |
|---|---|---|
| Jan 30 | 3.0% | Tax rebate. |
| Mar 18 | 2.25% | Bear Stearns bailout. |
| Apr 30 | 2.0% | Lehman fails. Bank bailout approved. AIG bailout. |
| Oct 8 | 1.5% | ^ |
| Oct 29 | 1.0% | ^ |
| Dec 16 | 0.25% | Effectively zero. Lowest fed fund rates possible |
- Between2008 and 2015, the Fed kept the rate at zero. Recession ended in June 2009.
Fed Chair Janet Yellen (February 2014—February 2018)
2015: GDP = 2.9%, Unemployment = 6%, Inflation = 0.7%
| Dec 17 | 0.5% | Growth stabilized so Fed began raising rates. |
|---|
2016: GDP = 1.6%, Unemployment = 4.6%, Inflation = 2.1%
| Dec 15 | 0.75% | Fed maintained steady increase in rates. |
|---|
2017: GDP = 2.2%, Unemployment = 4.1%, Inflation = 2.1%
| Mar 16 | 1.0% | Fed was steady on its path of normalizing its benchmark rate. |
|---|---|---|
| Jun 15 | 1.25% | ^ |
| Dec 14 | 1.5% | ^ |
Fed Chair Jerome Powell (Since February 2018)
2018: GDP = 2.95, Unemployment = 3.9%, Inflation = 1.9%
| Mar 22 | 1.75% | Fed projects steady growth. |
|---|---|---|
| Jun 14 | 2.0% | ^ |
| Sep 27 | 2.25% | ^ |
| Dec 19 | 2.5% | Fed stopped raising rates in 2019. |
