U.S. prime rate
Interest rate that most American banks charge their most creditworthy clients
U.S. prime rate
The U.S. prime rate is in principle the interest rate at which a supermajority (three-fourths) of American banking institutions grant loans to their most creditworthy corporate clients. As such, it serves as the de facto floor for private-sector lending, and is the baseline from which common "consumer" interest rates are set (e.g. credit card rates). Traditionally, the rate is set to approximately 300 basis points (3 percentage points) over the federal funds rate. The Federal Open Market Committee (FOMC) meets eight times per year wherein they set a target for the federal funds rate. In the United States, the prime rate is traditionally established by the Wall Street Journal. Every major bank sets its own prime rate. When 7 out of the 10 largest US banks change their prime rate, the Journal publishes a new prime rate.
Read on Wikipedia · Image FRED, Public domain
Open boosters, collect cards and trade them. Free to play.
Play for free