en.wikipedia.org/wiki/Ben_Bernanke
1 correction found
from 5.25% to 0.0% within less than a year
The Fed did not cut from 5.25% to near zero in less than a year. Its target was 5.25% in June 2006 and remained 5.25% until September 18, 2007; the near-zero 0 to 0.25% target range was not reached until December 16, 2008.
Full reasoning
The timing here is off by several months.
Federal Reserve records show:
- the target federal funds rate was 5.25% after the June 29, 2006 FOMC meeting;
- it was still 5.25% until the Fed began cutting on September 18, 2007;
- the Fed did not reach a near-zero target until December 16, 2008, when it set a 0 to 0.25% target range.
That means the move from 5.25% to near zero took about 15 months from September 18, 2007 to December 16, 2008, not "less than a year." The article also states the endpoint as 0.0%, but the official target was a range of 0 to 0.25%.
3 sources
- Federal Reserve Board - Open Market Operations
The Fed's historical target table shows 5.25% on June 29, 2006; 4.75% on September 18, 2007; and 0-0.25% on December 16, 2008.
- Federal Reserve Board - FOMC statement (September 18, 2007)
The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.
- Federal Reserve Board - FOMC statement (December 16, 2008)
The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.