What were the interest rates in 2005 (USA)?

Question: What were the interest rates in 2005?

What were the Federal Funds Rate in 2005?

In 2005, the Federal Funds Rate, which is the interest rate at which banks lend reserve balances to other banks on an overnight basis, saw several adjustments. According to the Federal Reserve Bank of St. Louis, the rate started the year at a range of 2.25% to 2.50%. Throughout the year, the Federal Reserve increased the rate eight times. Here are the key adjustments:

1. In February, the rate was increased to a range of 2.50% to 2.75%.
2. In March, the rate was increased to a range of 2.75% to 3.00%.
3. In May, the rate was increased to a range of 3.00% to 3.25%.
4. In June, the rate was increased to a range of 3.25% to 3.50%.
5. In August, the rate was increased to a range of 3.50% to 3.75%.
6. In September, the rate was increased to a range of 3.75% to 4.00%.
7. In November, the rate was increased to a range of 4.00% to 4.25%.
8. In December, the rate was increased to a range of 4.25% to 4.50%.

These adjustments were made in response to economic conditions, including inflation and unemployment rates, to maintain the health of the economy.

What were the Personal Loan Interest Rates in 2005?

The interest rates on personal loans at banks for a 24-month loan also fluctuated throughout 2005. According to the Federal Reserve Economic Data:

• In February, the rate was 12.01%.
• In May, the rate increased slightly to 12.05%.
• In August, the rate increased further to 12.22%.
• In November, the rate decreased to 11.95%.

What were the Credit Card Interest Rates in 2005?

Credit card interest rates in 2005 also varied. According to the Federal Reserve Economic Data:

• In February, the rate was 12.21%.
• In May, the rate increased to 12.77%.
• In August, the rate decreased to 12.48%.
• In November, the rate increased slightly to 12.58%.

Average inflation rate (CPI) during 2005

The average inflation rate in 2005, as measured by the Consumer Price Index (CPI) for All Urban Consumers, was 3.42% 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)