Prime Rate Drops To 3.25%

After today’s 1.00% emergency rate decrease in the target range for the Fed Funds Rate, banks adjusted their Prime Rates with a corresponding decrease from 4.25% to 3.25%. These changes are effective for many banks tomorrow, March 16, 2020.

Update March 16, 2020: Rate decrease confirmed.

Note: Due to the emergency rate cut being on a Sunday, we were not able to complete our usual bank survey for full confirmation. We are making the change to our reported rate based upon a limited survey of banks and expect full confirmation on Monday.

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. Mortgage loans track bond rates and don’t always see a direct correlation to Fed Funds and Prime Rate changes.

March 15th, 2020|Banking, Financial Markets, Loans, Mortgage Rates, News & Commentary, The Economy, Your Money|
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FOMC Cuts Fed Funds Rate to Zero at Emergency Meeting

The Federal Reserve cut the Fed Funds Rate to zero at an emergency Sunday FOMC meeting today in response to the increasing threat to the economy from the novel coronavirus pandemic. The rate will now be a target range of 0.00% to 0.25% effective tomorrow March 16, 2020.

Banks are expected to lower the Prime Rate to 3.25% tomorrow.

 

March 15, 2020

Federal Reserve issues FOMC statement

The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. Global financial conditions have also been significantly affected. Available economic data show that the U.S. economy came into this challenging period on a strong footing. Information received since the Federal Open Market Committee met in January indicates that the labor market remained strong through February and economic activity rose at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending rose at a moderate pace, business fixed investment and exports remained weak. More recently, the energy sector has come under stress. 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 have declined; 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 effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it […]

March 15th, 2020|Banking, Financial Markets, Mortgage Rates, News & Commentary, The Economy, Your Money|
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Prime Rate Lowered To 4.25%

After today’s .50% emergency rate decrease in the target range for the Fed Funds Rate, banks adjusted their Prime Rates with a corresponding decrease from 4.75% to 4.25%. These changes are effective for most banks tomorrow, March 4, 2020.

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.

March 3rd, 2020|Banking, Financial Markets, Loans, Mortgage Rates, News & Commentary, The Economy, Your Money|
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FOMC Cuts Fed Funds Rate 1/2 Percent at Emergency Meeting

The Federal Reserve cut the Fed Funds Rate 1/2 point at an emergency FOMC meeting today in response to the novel coronavirus threat to economy. The rate will now be a target range of 1.00% to 1.25% effective tomorrow March 4, 2020.

Banks are expected to lower the Prime Rate to 4.25% tomorrow.

 

March 03, 2020

Federal Reserve issues FOMC statement

For release at 10:00 a.m. EST

The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1‑1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.

March 3rd, 2020|Banking, Financial Markets, Mortgage Rates, News & Commentary, The Economy, Your Money|
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Fed Keeps Interest Rates Steady

At the first 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%.

The Fed continues to see inflation (excluding food and energy) running less than 2%.

The next regularly scheduled meeting concludes March 18.

 

January 29, 2020

Federal Reserve issues FOMC statement

Information received since the Federal Open Market Committee met in December 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 moderate 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 returning to 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 it assesses the appropriate path of the target range for the federal funds rate.

In determining the timing and size of future adjustments to the […]

January 29th, 2020|Banking, Financial Markets, Loans, Mortgage Rates, News & Commentary, The Economy, Your Money|
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