Falling interest rates Source: Shutterstock

After cutting its benchmark Federal Funds interest rate three times in 2019, the Federal Reserve followed up with two emergency rate cuts in March 2020 in an attempt to shield the economy from the devastating impacts of the COVID-19 crisis. The Federal Funds Rate now matches the historic lows of the 2009-11 Great Recession, sitting within a target range of 0-0.25%.

Don’t expect rates to rise any time soon. At the Federal Open Market Committee’s most recent meeting of June 9-10, 2020, Federal Reserve Bank Chair Jerome Powell anticipated “no rate increase at least through 2022.” The Fed’s goal is to get money back into the real economy, and the Fed Funds rate is one of its most potent tools.

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