Fed interest rate history · 2019
The Fed Funds Rate in 2019
In 2019, the Federal Reserve cut its benchmark rate from 2.5% to 1.75%, for a yearly average of 2.25% — the 5th-highest of the 18 years on record. 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.
- 2019 average 2.25% high 2.5% · low 1.75%
- Net move -0.75 pts 2.5% → 1.75%
- vs today 3.75% in 2026
- 2009–2026 average 1.55% long-run norm
2019 month by month
The rate began 2019 at 2.5% and ended it at 1.75%. Along the way the Fed brought it down in 3 — a net reduction of 0.75 points across the year. Its high was 2.5% and its low 1.75%. The chart above traces that path; hover any month to read the exact level.
What the Fed did in 2019, and why
The Fed reversed course and cut rates three times as growth slowed and trade tensions mounted — a mid-cycle adjustment.
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 2019 the rate averaged 2.25%, which makes the year the 5th-highest of the 18 years on record. For context, the benchmark has averaged 1.55% across the whole 2009–2026 record and ran about 0.74% on average through the 2010s, so 2019 sat above 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 high, as in 2019, the interest on credit cards, car loans and other variable-rate debt tends to be expensive, while the yield on savings accounts, CDs and money-market funds is more rewarding. 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 2019.
The US in global context
The Fed wasn't acting in isolation. Entering 2019, the Bank of England held its headline rate near 0.71% and the European Central Bank near -0.4%, against the Federal Reserve's 2.5%. 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 2019 compares
A year earlier, in 2018, the rate averaged 1.96% and ended at 2.5%. The following year, 2020, it averaged 0.5%. Set against today's 3.75%, 2019's 2.25% average was lower. The Fed sets only the short end of the interest-rate structure; see how the whole Treasury yield curve looked in 2019.
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 2019 — FAQ
What was the federal funds rate in 2019?
In 2019 the Fed's benchmark fell from 2.5% at the start of the year to 1.75% by year-end, averaging 2.25% (a high of 2.5% and a low of 1.75%).
Did the Fed raise or cut rates in 2019?
The rate cut 0.75 points on net, stepping down in 3 months across 2019, from 2.5% to 1.75%. The Fed reversed course and cut rates three times as growth slowed and trade tensions mounted — a mid-cycle adjustment.
How does the 2019 rate compare with today?
In 2019 the rate averaged 2.25%, 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 2019?
At the start of 2019, the Bank of England sat near 0.71% and the European Central Bank near -0.4%, against the Federal Reserve's 2.5%. 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 2019?
The Fed reversed course and cut rates three times as growth slowed and trade tensions mounted — a mid-cycle adjustment.
