Figure A
Even the Volcker Fed slashed interest rates during recessions: Unemployment and the federal funds rate, 1979–1983
| Unemployment | FFR | |
|---|---|---|
| 1979-07-01 | 5.7 | 10.47 |
| 1979-08-01 | 6.0 | 10.94 |
| 1979-09-01 | 5.9 | 11.43 |
| 1979-10-01 | 6.0 | 13.77 |
| 1979-11-01 | 5.9 | 13.18 |
| 1979-12-01 | 6.0 | 13.78 |
| 1980-01-01 | 6.3 | 13.82 |
| 1980-02-01 | 6.3 | 14.13 |
| 1980-03-01 | 6.3 | 17.19 |
| 1980-04-01 | 6.9 | 17.61 |
| 1980-05-01 | 7.5 | 10.98 |
| 1980-06-01 | 7.6 | 9.47 |
| 1980-07-01 | 7.8 | 9.03 |
| 1980-08-01 | 7.7 | 9.61 |
| 1980-09-01 | 7.5 | 10.87 |
| 1980-10-01 | 7.5 | 12.81 |
| 1980-11-01 | 7.5 | 15.85 |
| 1980-12-01 | 7.2 | 18.90 |
| 1981-01-01 | 7.5 | 19.08 |
| 1981-02-01 | 7.4 | 15.93 |
| 1981-03-01 | 7.4 | 14.70 |
| 1981-04-01 | 7.2 | 15.72 |
| 1981-05-01 | 7.5 | 18.52 |
| 1981-06-01 | 7.5 | 19.10 |
| 1981-07-01 | 7.2 | 19.04 |
| 1981-08-01 | 7.4 | 17.82 |
| 1981-09-01 | 7.6 | 15.87 |
| 1981-10-01 | 7.9 | 15.08 |
| 1981-11-01 | 8.3 | 13.31 |
| 1981-12-01 | 8.5 | 12.37 |
| 1982-01-01 | 8.6 | 13.22 |
| 1982-02-01 | 8.9 | 14.78 |
| 1982-03-01 | 9.0 | 14.68 |
| 1982-04-01 | 9.3 | 14.94 |
| 1982-05-01 | 9.4 | 14.45 |
| 1982-06-01 | 9.6 | 14.15 |
| 1982-07-01 | 9.8 | 12.59 |
| 1982-08-01 | 9.8 | 10.12 |
| 1982-09-01 | 10.1 | 10.31 |
| 1982-10-01 | 10.4 | 9.71 |
| 1982-11-01 | 10.8 | 9.20 |
| 1982-12-01 | 10.8 | 8.95 |
| 1983-01-01 | 10.4 | 8.68 |
| 1983-02-01 | 10.4 | 8.51 |
| 1983-03-01 | 10.3 | 8.77 |
Note: Recessions are shaded gray.
Source: Author’s analysis of Federal Reserve Bank of St. Louis, "Federal Reserve Economic Data (FRED)" (database), n.d., accessed December 2022.
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