Question: What were the interest rates in 2000?
Interest rates in 2000 were influenced by various economic events, including the dot-com bubble and the Federal Reserve’s monetary policy. These factors affected the Federal Funds Rate, personal loan interest rates, credit card interest rates, and the inflation rate.
What were the Federal Funds Rate in 2000?
The Federal Funds Rate, which is the interest rate at which banks lend reserve balances to other banks on an overnight basis, started the year 2000 at 5.45%. According to the Federal Reserve, the rate was adjusted six times throughout the year:
- In February, the rate was increased to 5.85%.
- In March, the rate was increased to 6.00%.
- In May, the rate was increased to 6.50%.
- In November, the rate was reduced to 6.00%.
- In December, the rate was reduced to 5.50%.
These adjustments were made in response to economic indicators and the aim of maintaining economic stability.
What were the Personal Loan Interest Rates in 2000?
The interest rate on personal loans at banks for a 24-month loan fluctuated slightly throughout the year. According to the Federal Reserve Economic Data:
- In February, the rate was 13.76%.
- In May, the rate increased slightly to 13.89%.
- In August, the rate decreased to 13.84%.
- In November, the rate increased to 14.10%.
What were the Credit Card Interest Rates in 2000?
The interest rate on credit cards also saw minor fluctuations throughout the year. According to the Federal Reserve Economic Data:
- In February, the rate was 15.55%.
- In May, the rate increased slightly to 15.60%.
- In August, the rate increased to 15.98%.
- In November, the rate remained almost the same at 15.99%.
Average inflation rate (CPI) during 2000
The average inflation rate in 2000, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), was 3.39% according to the Federal Reserve Economic Data. This rate represents the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Source notes: Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan (Source Federal Reserve Economic Data), Commercial Bank Interest Rate on Credit Card Plans All Accounts (Source Federal Reserve Economic Data), Inflation rate according to Federal Reserve Economic Data (CPI for All Urban Consumers: All Items in U.S. City Average, Percent Change from Year Ago. Annual, Not Seasonally Adjusted)
