After today’s 0.25% increase in the target range for the Fed Funds Rate, banks increased their Prime Rates with a corresponding increase from 8.25% to 8.50%. These changes are effective for most banks tomorrow July 27, 2023.
Prime RateFed Funds RateComparison
In addition to interest rate increases for commercial loans and credit cards, expect rate increases in many consumer loans which are based upon the Prime Rate – for instance home equity loans, home equity lines of credit (HELOCs), car loans, and personal loans. All of this leads to overall higher borrowing costs, reduced disposable income, and slower economic growth.
