The Fed Funds Rate is the rate banks charge each other for loans banks make to each other.
The erratic chart below tracks the highs and lows from 1954 to 2025. The highs and lows are caused by Supply and Demand.
Year Percent
1954 0.83
1957 3.50
1958 0.93
1960 3.99
1961 1.17
1966 5.53
1967 3.88
1969 8.90
1972 3.30
1974 11.34
1976 4.65
1980 10.98
1981 19.04
1983 8.51
1984 11.06
1986 5.89
1989 9.81
1993 2.96
2000 6.50
2004 1.00
2007 5.24
2008 0.93
2011 0.09
2016 0.34
2019 2.40
2020 0.05
2024 5.33
2025 4.33
https://fred.stlouisfed.org/series/FEDFUNDS
As of the first week of
September 2025, the effective federal funds rate is 4.33%. This rate
has been stable at this level in recent days and throughout August 2025,
according to data from the Federal Reserve and the St. Louis Fed's FRED database.
https://www.google.com/search?q=fed+funds+rate+as+of+september+2025
As of September 4, 2025, the
10-year Treasury rate was 4.17%. This rate is determined by market
forces, not directly set by the Federal Reserve, though the Fed's policy
influences it.
https://www.google.com/search?q=fed+10+year+rate+as+of+september+2025
The 10-year Treasury rate is the rate paid to all who buy US Treasury Bonds.
The U.S. inflation rate
was 2.7% year-over-year as of July 2025.
https://www.google.com/search?q=us+inflation+rate+2025+ytd
Comments
The wild fluctuations in the Fed Funds Rates from 1954 to 2025 are affected by the amount of US dollars bought by other countries to use in Trade with other countries. Trade transactions between countries can be made in US dollars and other currencies.
The Fed Funds Rate at 4.33% should be lowered to 3% to reduce the cost of interest on the US $1.2 trillion Annual Deficit.
Banks borrow from other Banks when they want to fund Corporate Customers. Banks need to maintain liquidity and borrow to maintain it. The Bank that lends to these Investing Banks want to put their extra money to work.
Norb Leahy, Dunwoody GA Tea Party Leader
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