(Reuters) - U.S. interest rates have never been as low as they are now at the start of any past Federal Reserve interest rate reduction cycle.
Here’s a look at each rate-cutting cycle since 1994, when the Fed began announcing its policy actions:
July 2019
Fed funds target rate before first cut: 2.25%-2.50%
First cut: 0.25 percentage point
Fed chair: Jerome Powell
Catalyst: Slowing of activity
Dissents: Kansas City Fed’s Esther George, Boston Fed’s Eric Rosengren
September 2007
Fed funds target rate before first cut: 5.25%
First cut: 0.50 percentage point
Fed chair: Ben Bernanke
Catalyst: U.S. housing market bust; global credit crunch
Last cut: December 2008
Number of rate cuts: 10
Fed funds target rate after last cut: 0.00%-0.25%
January 2001
Fed funds target rate before first cut: 6.50%
First cut: 0.50 percentage point
Fed chair: Alan Greenspan
Catalyst: Dot-com stock market bust; weakening U.S. output
Last cut: June 2003
Number of rate cuts: 13
Fed funds target rate after last cut: 1.00%
September 1998
Fed funds target rate before first cut: 5.50%
First cut: 0.25 percentage point
Fed chair: Alan Greenspan
Catalyst: Asian and Russian currency crises; collapse of hedge fund Long Term Capital Management
Last cut: January 1999
Number of rate cuts: 3
Fed funds target rate after last cut: 4.75%
July 1995
Fed funds target rate before first cut: 6.00%
First cut: 0.25 percentage point
Fed chair: Alan Greenspan
Catalyst: Slowing of activity
Dissent on first cut: Kansas City Fed’s Thomas Hoenig
Last cut: January 1996
Number of rate cuts: 3
Fed funds target rate after last cut: 5.25%
Reporting by Dan Burns and Ann Saphir; Editing by Paul Simao