Change in Fed Funds Rates: Never More Than 1% in Any Given Month

The Fed surprised the world today when it cut the Fed Funds Target by 75 basis points to 3.50%. Many are expecting another cut when the Fed meets again at the end of the month. Since 1984, the Fed funds rate has never been lowered (or increased) by more than 100 basis points in a single month. The Fed cut the rate by a combined one point within one month only three times before, in October and November of 1984 and again in January of 2001.