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| Prime Rate Forecast |
As of right now, the investors who trade in fed fund futures have odds at 99.6% (as implied by current pricing on contracts) that the Federal Open Market Committee (FOMC) will vote to raise the target range for the benchmark fed funds rate from 0.75% - 1.00% to 1.00% - 1.25% tomorrow (extremely likely.) This rate increase will cause the United States Prime Rate to rise to 4.25%.
The current Prime Rate, which went into effect on March 16, 2017, is 4.00%.
NB: U.S. Prime Rate = (The Fed Funds Target Rate + 3)
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Current Odds
- Current odds the U.S. Prime Rate will rise to 4.25% tomorrow: 99.6% (extremely likely), with remaining odds -- 0.4% (extremely unlikely) -- that the U.S. Prime Rate will rise to 4.50%.
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- NB: United States Prime Rate = (The Fed Funds Target Rate + 3)
The odds associated with fed fund futures contracts -- widely accepted as the best predictor of what the FOMC will do with the benchmark Fed Funds Target Rate -- are constantly changing, so stay tuned for the latest odds.