Prime Rate

also known as the Fed, National or United States Prime Rate,
from the interest-rate specialists at www.FedPrimeRate.comSM

Tuesday, May 03, 2005

WSJ Prime Rate Increase: Wall Street Journal Prime Rate Goes Up By 25 Basis Points

Today, The Wall Street Journal Prime Rate rose by 0.25 percentage points and is now 6.00%. This rate increase is, as you might have guessed, in synch' with today's hike of The Fed Funds Target Rate, which is now 3.00%. Comments from The Federal Open Market Committee* are as follows:
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. Recent data suggest that the solid pace of spending growth has slowed somewhat, partly in response to the earlier increases in energy prices. Labor market conditions, however, apparently continue to improve gradually. Pressures on inflation have picked up in recent months and pricing power is more evident. Longer-term inflation expectations remain well contained.
The Committee perceives that, with appropriate monetary policy action, the upside and downside risks to the attainment of both sustainable growth and price stability should be kept roughly equal. With underlying inflation expected to be contained, 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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