Fed Keeps Interest Rates Steady

At the last regularly scheduled meeting of the year, the Federal Reserve kept steady the Fed Funds Rate at the conclusion of their FOMC meeting today. The rate is currently a target range of 1.50% to 1.75%.

Banks maintained their same Prime Rates at 4.75%.

In 2020, the Federal Reserve’s Federal Open Market Committee (FOMC) plans to hold its meetings on January 28-29, March 17-18, April 28-29, June 9-10, July 28-29, September 15-16, November 4-5, and December 15-16.

 


December 11, 2019

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EST

Information received since the Federal Open Market Committee met in October indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a strong pace, business fixed investment and exports remain weak. On a 12‑month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee decided to maintain the target range for the federal funds rate at 1‑1/2 to 1-3/4 percent. The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective. The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as […]

Prime Rate Lowered To 4.75%

After today’s .25% rate decrease in the target range for the Fed Funds Rate, banks adjusted their Prime Rates with a corresponding decrease from 5.00% to 4.75%. These changes are effective for most banks tomorrow, October 31, 2019.

In addition to interest rate decreases for commercial loans and credit cards, expect rate decreases in many consumer loans which are based upon the Prime Rate – for instance home equity loans, car loans, and personal loans.

Prime Rate Drops To 5.00%

After today’s .25% rate decrease in the target range for the Fed Funds Rate, banks adjusted their Prime Rates with a corresponding decrease from 5.25% to 5.00%. These changes are effective for most banks tomorrow, September 19, 2019.

In addition to interest rate decreases for commercial loans and credit cards, expect rate decreases in many consumer loans which are based upon the Prime Rate – for instance home equity loans, car loans, and personal loans.

Prime Rate Drops Tomorrow to 5.25%

After today’s .25% rate decrease in the target range for the Fed Funds Rate, banks adjusted their Prime Rates with a corresponding decrease from 5.50% to 5.25%. These changes are effective for most banks tomorrow, August 1, 2019, and reverse last December’s controversial rate increase.

In addition to interest rate decreases for commercial loans and credit cards, expect rate decreases in many consumer loans which are based upon the Prime Rate – for instance home equity loans, car loans, and personal loans.

Prime Rate Rises Again On Fed Move

After today’s .25% rate increase in the target range for the Fed Funds Rate, banks increased their Prime Rates with a corresponding increase from 5.25% to 5.50%. These changes are effective for most banks tomorrow, December 20, 2018.

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, car loans, and personal loans.