The end of an era. With the U.S. economy growing an average of 2.2% annualized since it came out of recession in June 2009 and monthly job gains averaging 220,000 over the previous 12 months, the Federal Reserve raises its interest-rate target range to 0.25%-0.50% from 0%-0.25%. A year later, it raises the target range again to 0.50%-0.75%.
In its most recent completed tightening cycle, which began June 30, 2004, and lasted roughly two-and-a-half years, the Fed raised rates 17 times to put the brakes on surging housing prices.
In the Fed's most recent ‘easing’ cycle, the central bank lowered rates to near zero, in an attempt to boost lending.
Rock-bottom rates weren't enough to prop up the economy, which by 2008 had stumbled into a recession and was bleeding jobs. In this ‘zero-interest-rate period’, the Fed resorted to series of bond-buying stimulus programs aimed at restoring lending between banks and to corporations and households, and stimulating economic growth.