The Fed Stays Patient

Fed officials maintained the fed funds rate at its current level on May 7, 2025—its third consecutive hold after three cuts in 2024 lowered the benchmark rate by 1 percentage point from its 23-year peak .(To see a specific data point, tap or hover over that area of the chart.)

Prior to December 2008, the Federal Reserve specified a singular target rate. Since then, it has presented the federal funds rate as a 0.25% target range. The blue segments represent the high and low ends of the target range.
Chart: Investopedia / Diccon Hyatt, Sabrina KarlSource: Federal Reserve