United States Prime Rate

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

Saturday, May 07, 2022

Odds At 100% (Certain) The U.S. Prime Rate Will Rise To At Least 4.50% After The June 15, 2022 FOMC Monetary Policy Meeting

United States Prime Rate Forecast
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 raise the target range for the benchmark fed funds rate, from the current 0.75% - 1.00%, to at least   1.25% - 1.50%, at the June 15TH, 2022 monetary policy meeting, with the U.S. Prime Rate (a.k.a Fed Prime Rate) rising to at least 4.50% (with the possibility of an increase to 4.75%.)

"...Sure. So 75 basis point increase is not something the committee is actively considering. What we are doing is we raised 50 basis points today. And we said that, again, assuming that economic and financial conditions evolve in ways that are consistent with our expectations, there's a broad sense on the committee that additional 50 basis increases should be on, 50 basis points should be on the table for the next couple of meetings. So we're going to make those decisions at the meetings, of course, and we'll be paying close attention to the incoming data and the evolving outlook, as well as to financial conditions..."
Nevertheless, a 75 basis point (0.75 percentage point) increase is possible for the June 15TH meeting, due in large part to Thursday's Productivity and Labor Costs report for Q1, 2022. Year-on-year, productivity declined by 0.6% (bad), while unit labor costs increased by 7.2% (even worse!) 

Moreover, according to the April 2022 Jobs report, average hourly earnings rose by a hefty 5.464% compared to a year ago, and the most recent Core PCE inflation reading was 5.2%.

Stay tuned......
The current U.S. Prime Rate was raised to the current 4.00% on May 4TH, 2022.


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



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


Current Odds
  • Current odds the U.S. Prime Rate will rise to at least 4.50% after the June 15TH, 2022 FOMC monetary policy meeting, with the possibility of an increase to 4.75%: 100% (certain.)


Labels: , , , , , , , , , , , , , , , ,

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



Post a Comment

<< Home



Entire Website © 2024 FedPrimeRate.comSM

This website is neither affiliated nor associated with The United States Federal Reserve
in any way. Information in this website is provided for educational purposes only. The owners
of this website make no warranties with respect to any and all content contained within this
website. Consult a financial professional before making important decisions related to any
investment or loan product, including, but not limited to, business loans, personal loans,
education loans, first or second mortgages, credit cards, car loans or any type of insurance.