Chart of the Day: Interest Rate Cycle

With the current Federal Reserve Chair’s term set to conclude this May, today's Chart of the Day from YCharts looks back at the interest‑rate cycle during his tenure.

The chart captures the shifts in policy, beginning with near‑zero rates during the pandemic as the Fed worked to stabilize the economy.

As inflation accelerated in the following years, rates were raised to cool demand and help stabilize price pressures. With inflation easing thereafter, the Fed pivoted toward gradual rate cuts and a renewed focus on balancing price stability with concerns around employment.

The Federal Reserve plays a crucial role in maintaining economic stability, and interest rate policy will continue to influence the overall financial market.