Rate Cuts 2025 History Chart. Forbes advisor has compiled this history as a handy guide to the course of the federal funds rate and the federal reserve’s monetary policy decisions over the last 35 years. This brings us to 100bp of cumulative cuts since september, but the fed is indicating a much slower, more gradual series of rate cuts in the future.

Rate hikes are used to combat inflation, while rate cuts are used to stimulate the economy as unemployment rises. 18, 2024, the federal open market committee (fomc) cut the federal funds rate by 25 basis points (bps) to 4.25% to 4.5%, the third straight rate cut last year.