This afternoon, the FOMC is expected to announce a 75-basis point (BPS) rate hike, bringing federal fund rates to the 300-325 BPS range. This means interest rates will be between 3-3.25% for the first time since before the financial crisis in 2007-2008. More specifically, the Fed began cutting rates in September 2007, bringing rates to 3% by January 2008.
Many things have changed since January 2008. Here are 10 things that did not exist last time we saw rates this high.
1. Instagram - Meta Platform’s (NASDAQ:META) social media company was founded in 2010 and was acquired by Facebook in 2012.
2. Siri - “Hey Siri, when were you born?” Siri debuted on Apple Inc (NASDAQ:AAPL) iPhones in February 2010, more than 12 years ago.
3. Netflix Originals - Netflix Inc (NASDAQ:NFLX) pivoted from a DVD-shipping business to a streaming service in 2007. But, Netflix did not put out its own original until it released the Lilyhammer series in 2012.
4. Tesla Cars - The first Tesla Inc (NASDAQ:TSLA) Roadster was delivered to Elon Musk in February 2008, just one month after the Fed dropped rates down to 3%.
5. Uber and Lyft - If you wanted to catch a ride in 2008, taxis were your best bet. Uber Technologies Inc (NYSE:UBER) was founded in 2009 and LYFT Inc (NASDAQ:LYFT) in 2012.
6. Venmo - Wanted to split a bill with your friends in 2008? Well, you wouldn’t have been able to use Venmo. The popular money-sending service was launched in 2009 and was later acquired by PayPal Holdings (NASDAQ:PYPL) in 2012.
7. Apple Watches and iPads - In fact, Apple was still selling multiple versions of iPods, including iPod Nanos and iPod touches, in its famous Apple stores in malls throughout the world. The first iPad came in 2010 and the first Apple Watch was available in 2014.
8. Robinhood - If you wanted to trade stocks from your phone in 2008, it would have been a little bit harder back then. Robinhood Markets Inc (NASDAQ:HOOD) officially launched its app in 2015.
9. Bitcoin and Cryptocurrency - Bitcoin’s white paper, the first major cryptocurrency, was released in October 2008. The coin began trading and being used as a currency in 2009. Dogecoin wouldn’t arrive on the scene until 2013.
10. Fortnite - The world’s largest multiplayer battle royale game was launched in 2017 and quickly took the world by storm. Even though its popularity has dropped, there are still millions of players logging in every single day.
