U.S. Interest Rate Behavior
2000-2015
ECO-306
Ashley Marie Allen
Ten-Fifteen Year Period of U.S. Interest History Overview
I have chosen to analyze the special interest rates:
Federal Funds Rates
30 Year Conventional Mortgage Rate
I decided on the 2000-2015 period because I wanted to analyze and understand the economic
impact of the following events:
9/11 Attack leads to war on terror (2001)
Hurricane Katrina cost $160 billion (2005)
Housing Crisis (2007)
Billions in Bailaouts (2008)
Interest Rates: Trends
2000
Federal Funds Rate 6.24%
Unemployment Rate 4.0%
Inflation 3.36%
2002
Federal Funds Rate 1.67%
Unemployment Rate 5.70%
Inflation 1.58%
2007
Federal Funds Rate 5.02%
Unemployment Rate 5.0%
Inflation 2.85%
2015
Federal Funds Rate 0.39%
Unemployment Rate 5.0%
Inflation 0.35%
Interest Rates: Changes
Interest Rates: Changes
Interest Rates: Risk Factors
Economics risk factors that impacted interest rate
Inflation
Financial Crisis
Economic Growth
Employment Rates
Interest Rates: Risk Factors Cont...
The kind of impact they had
In 2000, a speculative bubble broke out in a report on inflation and massive investment losses
occurred.
Other financial events of that decade took shape in 2001 with terrorist attacks on 9/11. Our
economic climate was never to be the same again, after that terrible day in September 2001.
For a period of time, the Bond of New York was shut down. The disastrous economic loss in the
US caused 9/11.
Stock Market crashed in 2002. In 2002. After 9/11, the stock market came together, but in March
