Discussion What caused the effective federal fund rate to decrease since the 80'S?

[Amol S.]

Why did the Effective Federal Funds Rate stop increasing and started decreasing since the 80's? Why has no politician tried to fix it? It's currently at 8 cents.

Effective Federal Funds Rate (FRED:FEDFUNDS) — Historical Data and Chart — TradingView

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[ivwshane]

In a nut shell, it was how the Feds fought inflation at the time.

What Is The Federal Funds Rate? How The Fed Sets Interest Rates, Explained | Bankrate

Setting borrowing costs is how the Fed does its job: steering the world’s largest economy between the twin infernos of recession and overheating.

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