Chart 13
"The cost of funding earning assets is trending upward, following the increases in the federal funds rate."
Date Federal Funds Target Rate (Percent) Cost of Funding Earning Assets (Median Percent)
Q1 2000 5.70 3.74
Q2 2000 6.25 3.89
Q3 2000 6.50 4.15
Q4 2000 6.50 4.25
Q1 2001 5.61 4.14
Q2 2001 4.32 3.91
Q3 2001 3.55 3.64
Q4 2001 2.14 3.14
Q1 2002 1.75 2.66
Q2 2002 1.75 2.48
Q3 2002 1.75 2.39
Q4 2002 1.44 2.22
Q1 2003 1.25 1.99
Q2 2003 1.23 1.86
Q3 2003 1.00 1.72
Q4 2003 1.00 1.61
Q1 2004 1.00 1.52
Q2 2004 1.00 1.48
Q3 2004 1.42 1.53
Q4 2004 1.94 1.60
Q1 2005 2.44 1.68
Q2 2005 2.92 1.86
Q3 2005 3.43 2.06
Q4 2005 3.97 2.24
Source: FDIC, Federal Reserve