The Federal Reserve adjusts fed funds in response to what’s happening in the economy. Understanding Fed Interest Rate Decisions Understanding why the Federal Open Market Committee (FOMC) raised the fed funds target rate in 1994 can actually provide insight into why it’s doing something similar today.įorbes Advisor has compiled this history as a handy guide to the course of the federal funds rate and the Federal Reserve’s monetary policy decisions over the last 30 years. This could also be said of Federal Reserve interest rate policy, although it’s a lot less entertaining than “The Million Pound Bank Note.”įor anyone who follows financial markets, a good grasp on the course of Fed monetary policy decisions and the reasoning behind them is essential. Mark Twain wrote that history doesn’t repeat itself, but it often rhymes.
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