Second and EMERGENCY FOMC Meeting of 2020 Adjourned: United States Prime Rate Is Cut To 4.25%

Novel COVID-19 CoronaVirus Threat:
United States Prime Rate
EMERGENCY Cut To 4.25%

The Federal Open Market Committee (FOMC) of the Federal Reserve System has just adjourned a second and EMERGENCY monetary policy meeting of 2020 and, due to the growing threat of the Novel COVID-19 CoronaVirus, has taken the very rare, inter-meeting step of cutting the benchmark target range for the federal funds rate from 1.50% - 1.75%, to 1.00% - 1.25%. Therefore, the United States Prime Rate (a.k.a the Fed Prime Rate) is now  4.25%.

NB: U.S. Prime Rate = (The Fed Funds Target Rate + 3)

Here's a clip from today's FOMC press release (note text in bold):

"...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...."

==========

==========

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <