What are the historical changes in the target federal funds rate?
The Federal Reserve’s objective in using the tools of monetary policy may be a desired quantity of reserves or a desired price of reserves–the federal funds rate. During the 1980s, the approach gradually changed from seeking a desired quantity of reserves toward attaining a specified level of the federal funds rate, a process that was largely complete by the end of the decade. In 1995, the FOMC began announcing its target level for the federal funds rate. Historical changes in the target federal funds rate are available on the Board of Governors’ web site.
The Federal Reserve’s objective in using the tools of monetary policy may be a desired quantity of reserves or a desired price of reserves–the federal funds rate. During the 1980s, the approach gradually changed from seeking a desired quantity of reserves toward attaining a specified level of the federal funds rate, a process that was largely complete by the end of the decade. In 1995, the FOMC began announcing its target level for the federal funds rate. Historical changes in the target federal funds rate.
