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% 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% |