Funds Rate is the cost of borrowing immediately available funds, primarily
for just one day. The effective rate is weighted average of the
reported rates at which different amounts of the day's trading through New
York Brokers occurs.
Rate History: For Historical Reference Only: Rates and explanations
provided by the Federal Reserve System. Accuracy of our
information is not guaranteed. Some rates are rounded due mid-month
changes or may contain typographical errors. If you find a
typographical error in the rate table let us know.
* January 2008: Two
Cuts in one month
- January 30, 2008 cut was the second by the central bank in eight days.
The first, which saw the Fed cut its fed funds rate to 3.5% from 4.25%,
came after an emergency meeting on Jan. 21, 2008 as Asian and European
markets were hit by panic selling.
The Fed also cut its discount rate -- the rate it charges member banks for
short-term loans -- to 3.5% from 4% on January 30, 2008.
April 30, 2008
(last day of the month) rate cut to 2.00%
The combined rate cuts were the largest in the shortest time since 1990,
when the Fed established a policy of trying to control growth and
inflation by targeting short-term interest rates
* Oct 08, 2008
Fed cuts rates to 1.50% in a coordinated move with foreign central banks.
Oct 29, 2008 Fed cuts rates to 1.00%. Stock markets moved up and
down in the hundreds of points since Oct 08 cut.