Federal Funds Rate information. Definition of the Federal Funds Rate and Federal Reserve Rates. Historical Fed Funds with a complete history of the Fed Rate and Federal Reserve Interest Rate changes over time. Find the current Fed Funds Target Rate as well as the Fed Funds forecast.

Fed Fund Rate Changes and Open Market Operations

Federal Reserve open market operations are the primary tool used by the Federal Reserve to control the level of interest rates.  Federal Reserve open market operations involve the purchases and sales of U.S. Treasury securities and U.S. federal agency securities.

This goal of the open market operations is expand and contract the amount of reserves held by banks and influence the rate on these reserves which is the federal funds rate.  The federal funds rate is the interest rate at which banks lend excess reserve balances at the Federal Reserve to other banks overnight.

The Federal Reserve’s objective for open market operations can change and have other desired objectives other than managing the fed funds rate, however the announcement of the targeted fed funds rate is one of the key announcements issued by the FOMC shortly after each of its meetings.

The short-term objective for open market operations is specified by the Federal Open Market Committee (FOMC) and subsequently announced at the end of the regularly scheduled meetings.

The following list includes the announcements by the Federal Reserve from 1990 to the present regarding changes made to the fed funds target rate with the date, the amount of the increase or decrease and the targeted rate.

The last change to the fed funds targeted range took place in December, 2008.

2008 Feds Fund Rate Changes   
December 16, 2008 decrease by 75-100 basis points with a target of 0.00 – 0.25%
October 29, 2008 decrease by 50 basis points with a target of 1.00%
October 8, 2008 decrease by 50 basis points with a target of 1.50%
April 30, 2008 decrease by 25 basis points with a target of 2.00%
March 18, 2008 decrease by 75 basis points with a target of 2.25%
January 30, 2008 decrease by 50 basis points with a target of 3.00%
January 22, 2008 decrease by 75 basis points with a target of 3.50%

2007 Feds Fund Rate Changes   
December 11, 2007 decrease by 25 basis points with a target of 4.25%
October 31, 2007 decrease by 25 basis points with a target of 4.50%
September 18, 2007 decrease by 50 basis points with a target of 4.75%

2006 Feds Fund Rate Changes   
June 29, 2006 increase by 25 basis points with a target of 5.25%
May 10, 2006 increase by 25 basis points with a target of 5.00%
March 28, 2006 increase by 25 basis points with a target of 4.75%
January 31, 2006 increase by 25 basis points with a target of 4.50%

2005 Feds Fund Rate Changes   
December 13, 2005 increase by 25 basis points with a target of 4.25%
November 1, 2005 increase by 25 basis points with a target of 4.00%
September 20, 2005 increase by 25 basis points with a target of 3.75%
August 9, 2005 increase by 25 basis points with a target of 3.50%
June 30, 2005 increase by 25 basis points with a target of 3.25%
May 3, 2005 increase by 25 basis points with a target of 3.00%
March 22, 2005 increase by 25 basis points with a target of 2.75%
February 2, 2005 increase by 25 basis points with a target of 2.50%

2004 Feds Fund Rate Changes   
December 14, 2004 increase by 25 basis points with a target of 2.25%
November 10, 2004 increase by 25 basis points with a target of 2.00%
September 21, 2004 increase by 25 basis points with a target of 1.75%
August 10, 2004 increase by 25 basis points with a target of 1.50%
June 30, 2004 increase by 25 basis points with a target of 1.25%

2003 Feds Fund Rate Changes   
June 25, 2003 decrease by 25 basis points with a target of 1.00%

2002 Feds Fund Rate Changes   
November 6, 2002 decrease by 50 basis points with a target of 1.25%

2001 Feds Fund Rate Changes   
December 11, 2001 decrease by 25 basis points with a target of 1.75%
November 6, 2001 decrease by 50 basis points with a target of 2.00%
October 2, 2001 decrease by 50 basis points with a target of 2.50%
September 17, 2001 decrease by 50 basis points with a target of 3.00%
August 21, 2001 decrease by 25 basis points with a target of 3.50%
June 27, 2001 decrease by 25 basis points with a target of 3.75%
May 15, 2001 decrease by 50 basis points with a target of 4.00%
April 18, 2001 decrease by 50 basis points with a target of 4.50%
March 20, 2001 decrease by 50 basis points with a target of 5.00%
January 31, 2001 decrease by 50 basis points with a target of 5.50%
January 3, 2001 decrease by 50 basis points with a target of 6.00%

2000 Feds Fund Rate Changes   
May 16, 2000 increase by 50 basis points with a target of 6.50%
March 21, 2000 increase by 25 basis points with a target of 6.00%
February 2, 2000 increase by 25 basis points with a target of 5.75%

1999 Feds Fund Rate Changes   
November 16, 1999 increase by 25 basis points with a target of 5.50%
August 24, 1999 increase by 25 basis points with a target of 5.25%
June 30, 1999 increase by 25 basis points with a target of 5.00%

1998 Feds Fund Rate Changes   
November 17, 1998 decrease by 25 basis points with a target of 4.75%
October 15, 1998 decrease by 25 basis points with a target of 5.00%
September 29, 1998 decrease by 25 basis points with a target of 5.25%

1997 Feds Fund Rate Changes   
March 25, 1997 increase by 25 basis points with a target of 5.50%

1996 Feds Fund Rate Changes   
January 31, 1996 decrease by 25 basis points with a target of 5.25%

1995 Feds Fund Rate Changes   
December 19, 1995 decrease by 25 basis points with a target of 5.50%
July 6, 1995 decrease by 25 basis points with a target of 5.75%
February 1, 1995 increase by 50 basis points with a target of 6.00%

1994 Feds Fund Rate Changes   
November 15, 1994 increase by 75 basis points with a target of 5.50%
August 16, 1994 increase by 50 basis points with a target of 4.75%
May 17, 1994 increase by 50 basis points with a target of 4.25%
April 18, 1994 increase by 25 basis points with a target of 3.75%
March 22, 1994 increase by 25 basis points with a target of 3.50%
February 4, 1994 increase by 25 basis points with a target of 3.25%

1992 Feds Fund Rate Changes   
September 4, 1992 decrease by 25 basis points with a target of 3.00%
July 2, 1992 decrease by 50 basis points with a target of 3.25%
April 9, 1992 decrease by 25 basis points with a target of 3.75%

1991 Feds Fund Rate Changes   
December 20, 1991 decrease by 50 basis points with a target of 4.00%
December 6, 1991 decrease by 25 basis points with a target of 4.50%
November 6, 1991 decrease by 25 basis points with a target of 4.75%
October 31, 1991 decrease by 25 basis points with a target of 5.00%
September 13, 1991 decrease by 25 basis points with a target of 5.25%
August 6, 1991 decrease by 25 basis points with a target of 5.50%
April 30, 1991 decrease by 25 basis points with a target of 5.75%
March 8, 1991 decrease by 25 basis points with a target of 6.00%
February 1, 1991 decrease by 50 basis points with a target of 6.25%
January 9, 1991 decrease by 25 basis points with a target of 6.75%

1990 Feds Fund Rate Changes   
December 18, 1990 decrease by 25 basis points with a target of 7.00%
December 7, 1990 decrease by 25 basis points with a target of 7.25%
November 13, 1990 decrease by 25 basis points with a target of 7.50%
October 29, 1990 decrease by 25 basis points with a target of 7.75%
July 13, 1990 decrease by 25 basis points with a target of 8.00%