Odds At 100% (Certain) The United States Prime Rate Will Continue At 3.25% After The January 27, 2021 FOMC Monetary Policy Meeting

Prime Rate Prediction

Prime Rate Forecast

As of right now, our odds are at 100% (certain) the Federal Open Market Committee (FOMC) will vote to leave the target range for the benchmark fed funds rate at the current 0.00% - 0.25% at the January 27^TH, 2021 monetary policy meeting, and keep the United States Prime Rate (a.k.a Fed Prime Rate) at 3.25%.

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The median price for a previously owned home was $310,800 during November 2020, while inventory dropped to 1,280,000.

During November 2019, the median price was $271,300, and inventory was 1,640,000.

The coronavirus pandemic has the United States on the move, as evidenced by sales numbers, and prices. The seasonally adjusted annualized sales count was 6,690,000 last month, while the November 2019 figure was 5,320,000.

>> http://bit.ly/COVID-Pandemic <<

 

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The current U.S. Prime Rate was lowered from 4.25% to the current 3.25% on March 15^TH, 2020.

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Coronavirus COVID-19 Reminder:

Symptoms of COVID-19, which may appear 2-14 days after exposure, include:

• Fever
• Cough
• Shortness of breath

Emergency warning signs for COVID-19 include:

• Difficulty breathing or shortness of breath
• Persistent pain or pressure in the chest
• New confusion or inability to arouse
• Bluish lips or face

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--  Stop The Spread of Germs (PDF) --

-- What To Do If You Are Sick (PDF) --

-- Novel COVID-19 Coronavirus UPDATES --

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

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Stay tuned for the latest odds, and for current U.S. economic data (inflation, jobs, economic growth, wages, etc.) 

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Current Odds

• Current odds the United States Prime Rate will remain at the current 3.25% after the January 27^TH, 2021 FOMC monetary policy meeting: 100% (certain.)
  
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• NB: United States Prime Rate = (The Fed Funds Target Rate + 3)

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Ninth and Final FOMC Meeting of 2020 Adjourned: United States Prime Rate Remains At 3.25%

United States Prime Rate

The Federal Open Market Committee (FOMC) of the Federal Reserve System has just adjourned its ninth and final monetary policy meeting of 2020 and, in accordance with our latest forecast, has voted to maintain the benchmark target range for the federal funds rate at 0% - 0.25%. Therefore, the United States Prime Rate (a.k.a the Fed Prime Rate) remains at 3.25%.

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 Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.

The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year. Weaker demand and earlier declines in oil prices have been holding down consumer price inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.

The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In addition, the Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee's maximum employment and price stability goals. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

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..."

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