2015-03 Thursday's question: will the FED raise interest rate today (they did not)

You can read this to see the predictions before the decision is announced later today.

There is a great graph in the article showing the rate since 1985.

It shows the Federal Funds Target Rate: the rate at which financial institutions lend reserves to each other overnight.

As you can see:

• the Federal Funds rate was greatly reduced (by 5%) in the recession that followed the bursting of stock market bubble in 2000

• the FED started increasing it in 2004, and it rose significantly (by 4%)

• When the Great recession hit, it very rapidly reduced (by 5%) the rate to just above zero

• The rate has been constant since 2008.