Swing Trading Strategies & Stock Picks Since 2003

Thanks to the Federal Reserve’s decision to drop their target Fed Funds rate to an all-time record of 0.00% to 0.25%, the subject of this week’s chart of the week is a no brainer.

The Fed has 55 years of Fed Funds rate data and I have chosen to highlight not the target rate announced by the FOMC, but the daily effective federal funds rate, which is a volume-weighted average of rates on trades arranged by major brokers.

Not surprisingly, Friday’s effective Fed Funds rate of 0.11% is a record low, but that record was actually established on December 10^th and tied again on Friday.

For history buffs, the record high of 22.36% dates back to July 22, 1981. The average Fed Funds rate since 1954 is 5.62%.

[source: Federal Reserve Bank, VIX and More]