Fed interest rate history · 2009
The Fed Funds Rate in 2009
In 2009, the Federal Reserve held its benchmark rate near 0.25%, for a yearly average of 0.25% — among the near-zero years at the bottom of the series. Here's the month-by-month path, what the Fed did and why, how the UK and Europe compared, and where it sits against the 3.75% of today.
- 2009 average 0.25% high 0.25% · low 0.25%
- Net move +0.00 pts 0.25% → 0.25%
- vs today 3.75% in 2026
- 2009–2026 average 1.55% long-run norm
2009 month by month
The Fed left its benchmark untouched all year, holding it at 0.25% from January through December — a year of deliberate patience rather than action. The chart above traces that path; hover any month to read the exact level.
What the Fed did in 2009, and why
The Fed had slashed its benchmark to a record-low 0–0.25% range at the end of 2008 to fight the financial crisis, and held it there through the year as unemployment climbed.
The Fed sets this rate to serve its "dual mandate" — stable prices and maximum employment. When inflation runs hot it raises the benchmark to cool borrowing and demand; when the economy weakens it cuts to encourage activity. In 2009 the rate averaged 0.25%, which makes the year among the near-zero years at the bottom of the series. For context, the benchmark has averaged 1.55% across the whole 2009–2026 record and ran about 0.25% on average through the 2000s, so 2009 sat in line with its own decade.
What it meant for your money
The federal funds rate is the wholesale price of money, and it filters into almost every rate a household touches. When it sits low, as in 2009, the interest on credit cards, car loans and other variable-rate debt tends to be cheap, while the yield on savings accounts, CDs and money-market funds is thin. Fixed mortgage rates take their cue more from long-term Treasury yields than from the Fed directly, but they generally drift in the same direction. You can see that year's home-loan cost in our mortgage-rate history for 2009.
The US in global context
The Fed wasn't acting in isolation. Entering 2009, the Bank of England held its headline rate near 1.33% and the European Central Bank near 1%, against the Federal Reserve's 0.25%. The levels differ — and each bank measures its rate slightly differently — but the world's major central banks tend to move through the same broad cycle, tightening and easing together as the same global forces of growth and inflation play out. To see the full three-way comparison over time, view the US/UK/Europe chart on the main study.
How 2009 compares
The following year, 2010, it averaged 0.25%. Set against today's 3.75%, 2009's 0.25% average was lower.
This is one year of the story. For the full picture — every month since 2009, the zero years, the great tightening, and the UK/Europe comparison — see the Federal Reserve interest rate history, 2009–today.
The Fed rate in 2009 — FAQ
What was the federal funds rate in 2009?
In 2009 the Fed's benchmark held near 0.25%, averaging 0.25% (a high of 0.25% and a low of 0.25%).
Did the Fed raise or cut rates in 2009?
Neither — the Fed held its benchmark steady at 0.25% throughout 2009.
How does the 2009 rate compare with today?
In 2009 the rate averaged 0.25%, versus 3.75% today. Across the full 2009–2026 record the benchmark has averaged 1.55%, ranging from 0.25% to 5.5%.
What were UK and European interest rates in 2009?
At the start of 2009, the Bank of England sat near 1.33% and the European Central Bank near 1%, against the Federal Reserve's 0.25%. Each central bank defines its headline rate a little differently, but all three tend to move through the same broad cycle.
Why did the Fed move rates in 2009?
The Fed had slashed its benchmark to a record-low 0–0.25% range at the end of 2008 to fight the financial crisis, and held it there through the year as unemployment climbed.
