Rate: Increases to 14 percent
The details: A recession, at the time considered the worst since the Great Depression, grips the nation at the beginning of the year. Under Chairman Paul Volcker, the Fed is determined to quell inflation that has risen to more than 14 percent. It sets the federal funds rate in January at 14 percent, then boosts it as high as 20 percent two separate times during the year.
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Remember the wise decision that Bank of America made in August 2001 in light of the decision it's making now.
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