Prime Rate Today: Up, Up and Away! Wall Street Journal Prime Rate Is Bumped Up By 25 Basis Points

Just when you thought The Fed would leave interest rates alone for Christmas, they go and raise rates again! Shame on those Feds! Don't they know it's Christmas time?! Sheeesh!

The Wall Street Journal Prime Rate went up by 0.25 percentage points today, and is now 5.25%. The Fed Funds Target Rate was raised to 2.25%. What did The Fed* have to say about this lump of coal they delivered to us today? Here's a snippet:

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 2-1/4 percent.

The Committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity. Output appears to be growing at a moderate pace despite the earlier rise in energy prices, and labor market conditions continue to improve gradually. Inflation and longer-term inflation expectations remain well contained. 

The Committee perceives the upside and downside risks to the attainment of both sustainable growth and price stability for the next few quarters to be roughly equal. With underlying inflation expected to be relatively low, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured. Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.

Click here for a comprehensive history of The Wall Street Journal Prime Rate.

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