United States Prime Rate: Odds Now At 100% (Certain) The U.S. Prime Rate Will Rise To At Least 5.50% After The July 27, 2022 FOMC Monetary Policy Meeting

Thursday, July 14, 2022

Odds Now At 100% (Certain) The U.S. Prime Rate Will Rise To At Least 5.50% After The July 27, 2022 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 raise the target range for the benchmark fed funds rate, from the current 1.50% - 1.75%, to at least 2.25% - 2.50%, at the July 27^TH, 2022 monetary policy meeting, with the U.S. Prime Rate (a.k.a Fed Prime Rate) rising to at least 5.50% -- with the strong possibility of an increase to 5.75%.

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Ugly Inflation Readings

Year-on-year (YoY), the Consumer Price Index for June 2022 came in at a scary 9.06%, which instantly caused many rate watchers, including this shop, to predict that the Fed is likely to raise short-term rates by 100 basis points (1.00 percentage point) 13 days from now (July 27.)

Also very notable: This morning's Producer Price Index (PPI) reading for June, which came in at 11.3% YoY, was higher than all credible forecasts. The all-time , YoY record-high for the PPI was set a few months back: the March 2022 reading was 11.6%.

Stay tuned.........

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The United States Prime Rate was raised to the current 4.75% on June 15^TH, 2022.

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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 U.S. Prime Rate will rise to at least 5.50% after theJuly 27^TH, 2022 FOMC monetary policy meeting, with a strong possibility of an increase to 5.75%: 100% (certain.)