How The Fed Cuts Rates

The above table shows how the Fed has cut its Fed Funds rate once it recognized an economic recession. To identify the low point we went out a number of months post-recession for each recessionary period that we measured. The Fed does not have as much discretion today as it did 20-30 years ago in terms of maintaining elevated rates for an extended period of time given the enormous Treasury debt outstanding ($34 Trillion).

---