Interest rates have a long and storied history in America, dating back to the earliest days of our nation’s founding. From the establishment of the first banks to the modern-day Federal Reserve, interest rates have played a critical role in the economic growth and development of the United States.

In this comprehensive timeline, we’ll explore the evolution of interest rates in America, from their earliest origins to the present day.

1791: The First Bank of the United States is established, with the power to issue loans and set interest rates.

1816: The Second Bank of the United States is established, with the power to regulate interest rates and the money supply.

1837: The Panic of 1837 causes a sharp drop in interest rates, leading to a wave of foreclosures and bankruptcies.

1861-1865: The Civil War leads to a surge in government borrowing, which drives up interest rates.

1873: The Panic of 1873 leads to a prolonged economic depression and a drop in interest rates.

1913: The Federal Reserve is established, with the power to set interest rates and regulate the money supply.

1929: The Stock Market Crash of 1929 triggers the Great Depression, which leads to a prolonged period of low interest rates.

1950s-1970s: The post-war economic boom leads to a period of relatively high interest rates, as the Federal Reserve seeks to control inflation.

1980s-1990s: The Federal Reserve’s efforts to control inflation lead to a period of high interest rates, culminating in the Federal Funds Rate reaching a peak of 19.1% in 1981.

2000s: The Dot-com Bubble and the subprime mortgage crisis lead to a period of low interest rates, as the Federal Reserve seeks to stimulate economic growth.

2010s: The Federal Reserve keeps interest rates at historic lows in response to the Great Recession, but begins to gradually raise rates in 2015 as the economy improves.

2020s: The COVID-19 pandemic leads to a sharp drop in interest rates, as the Federal Reserve cuts rates to historic lows in an effort to support the economy.

Throughout American history, interest rates have played a critical role in shaping the economy and impacting the lives of everyday people. By understanding the evolution of interest rates in America, we can gain valuable insights into the forces that drive economic growth and developm