FOMC Raises Fed Funds Rate

The Federal Reserve raised the Fed Funds Rate at the conclusion of their FOMC meeting today. The rate is now in a target range of 0.75% to 1.00%, moving up basically 0.25%.

Banks will raise their Prime Rates correspondingly.


Release Date: March 15, 2017

Information received since the Federal Open Market Committee met in February indicates that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace. Job gains remained solid and the unemployment rate was little changed in recent months. Household spending has continued to rise moderately while business fixed investment appears to have firmed somewhat. Inflation has increased in recent quarters, moving close to the Committee’s 2 percent longer-run objective; excluding energy and food prices, inflation was little changed and continued to run somewhat below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will stabilize around 2 percent over the medium term. Near-term risks to the economic outlook appear roughly balanced. The Committee continues to closely monitor inflation indicators and global economic and financial developments.

In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.

In […]

Fed Raises Interest Rates

The Federal Reserve raised the Fed Funds Rate at the conclusion of their FOMC meeting. The rate is now in a target range of 0.50% to 0.75%, moving up basically .25%.

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Release Date: December 14, 2016

For release at 2:00 p.m. EST
Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been expanding at a moderate pace since mid-year. Job gains have been solid in recent months and the unemployment rate has declined. Household spending has been rising moderately but business fixed investment has remained soft. Inflation has increased since earlier this year but is still below the Committee’s 2 percent longer-run objective, partly reflecting earlier declines in energy prices and in prices of non-energy imports. Market-based measures of inflation compensation have moved up considerably but still are low; most survey-based measures of longer-term inflation expectations are little changed, on balance, in recent months.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will strengthen somewhat further. Inflation is expected to rise to 2 percent over the medium term as the transitory effects of past declines in energy and import prices dissipate and the labor market strengthens further. Near-term risks to the economic outlook appear roughly balanced. The Committee continues to closely monitor inflation indicators and global economic and financial developments.

In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent. The stance […]

Prime Rate Raising to 3.50%

On the heels of today’s .25% rate increase in the Fed Funds Rate, banks are moving their Prime Rates with a corresponding increase to 3.50%. These changes will most likely be effective tomorrow, December 17, 2015.

Wells Fargo was the first to move. We are monitoring the actions of many other banks. Based upon historical precedence we expect all other banks to follow suit.

(Update as of 4:30pm Eastern)
Banks announcing increase to 3.50% Prime Rate effective December 17, 2015:

Wells Fargo
PNC Bank
Chase
Citibank (base rate)
Bank of America