Question: What were the interest rates in 2021 (USA)?
Interest rates in 2021 were influenced by several economic events, including the ongoing impact of the COVID-19 pandemic and the government’s fiscal and monetary responses to it.
What were the Federal Funds Rate in 2021?
The Federal Funds Rate, which is the interest rate at which banks lend reserve balances to other banks on an overnight basis, remained steady throughout 2021. The Federal Reserve maintained the rate at a range of 0.00% to 0.25% for the entire year. This decision was made to support continued economic recovery from the downturn caused by the COVID-19 pandemic.
What were the Personal Loan Interest Rates in 2021?
The interest rates 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 9.46%
- In May, the rate increased slightly to 9.58%
- In August, the rate decreased to 9.39%
- By November, the rate had fallen to 9.09%
These changes in personal loan interest rates were likely influenced by various factors, including changes in demand for loans and the overall economic climate.
What were the Credit Card Interest Rates in 2021?
The interest rates on credit cards also saw minor fluctuations throughout 2021. According to the Federal Reserve Economic Data:
- In February, the rate was 14.75%
- In May, the rate decreased slightly to 14.61%
- In August, the rate was 14.54%
- By November, the rate had fallen to 14.51%
These changes in credit card interest rates were likely influenced by various factors, including changes in consumer spending habits and the overall economic climate.
Average inflation rate (CPI) during 2021
The average inflation rate in 2021, as measured by the Consumer Price Index (CPI) for All Urban Consumers, was 7.10%. This high rate of inflation was largely due to the economic impact of the COVID-19 pandemic and the government’s fiscal and monetary responses to it.
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)
