<h2 id="quick-take">Quick Take</h2>
<ul>
<li>The average Federal Funds Rate from 1955-01-01 to 2023-05-17 is 4.62%. We are now in a normal regime of interest rates.</li>
<li>The issue now becomes the total debt to GDP — which is roughly 120% — so as rates stay elevated, it will cost more to service the interest.</li>
<li>As it becomes more expensive to service the<a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/#:~:text=Spending%20Trends%20Over%20Time%20and,6.27%20trillion%20in%20FY%202022."> debt</a>, this will eat into other sectors and shrink their pie, such as health care and education, and society will break down further.</li>
<li>Looking out to <a href="https://www.crfb.org/blogs/just-how-big-are-federal-interest-payments">FY 2032</a>. interest costs are projected to hit $1.2 trillion, which will be the largest expenditure program, surpassing Medicaid ($789 billion) and defense ($990 billion).</li>
<li>The only way would be to grow GDP ahead of the debt securities and liabilities, but that looks extremely unlikely — especially with an aging population and declining population.</li>
</ul>
<figure id="attachment_325773" aria-describedby="caption-attachment-325773" style="width: 1316px" class="wp-caption aligncenter"><img class="wp-image-325773 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/05/math.png" alt="GDP vs interest: (Source: FRED)" width="1316" height="487" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/math.png 1316w, https://cryptoslate.com/wp-content/uploads/2023/05/math-300x111.png 300w, https://cryptoslate.com/wp-content/uploads/2023/05/math-1024x379.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/math-768x284.png 768w" sizes="(max-width: 1316px) 100vw, 1316px" /><figcaption id="caption-attachment-325773" class="wp-caption-text">GDP vs. interest: (Source: FRED)</figcaption></figure>
<figure id="attachment_325772" aria-describedby="caption-attachment-325772" style="width: 1176px" class="wp-caption aligncenter"><img class="wp-image-325772 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/05/fff.jpg" alt="Fed Funds: (Source: FRED)" width="1176" height="591" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/fff.jpg 1176w, https://cryptoslate.com/wp-content/uploads/2023/05/fff-300x151.jpg 300w, https://cryptoslate.com/wp-content/uploads/2023/05/fff-1024x515.jpg 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/fff-768x386.jpg 768w" sizes="(max-width: 1176px) 100vw, 1176px" /><figcaption id="caption-attachment-325772" class="wp-caption-text">Fed Funds: (Source: FRED)</figcaption></figure>
<p>The post <a rel="nofollow" href="https://cryptoslate.com/insights/the-average-federal-funds-rate-from-1955-to-2023-is-4-62/">The average Federal Funds Rate from 1955 to 2023 is 4.62%</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.</p>

The average Federal Funds Rate from 1955 to 2023 is 4.62%

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