United States Prime Rate

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

Monday, June 28, 2021

Odds At 100% (Certain) The United States Prime Rate Will Continue At 3.25% After The July 28, 2021 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 leave the target range for the benchmark fed funds rate at the current 0.00% - 0.25% at the July 28TH, 2021 monetary policy meeting, and keep the United States Prime Rate (a.k.a Fed Prime Rate) at 3.25%.

======= 
 
Housing

New record high prices for previously owned homes.  During May 2021, the median price for a used home was $350,300, a 23.563% (+$66,800) increase compared to May 2020.
 
Inflation News

The inflation gauge to which the Fed pays close attention -- the Core PCE -- rose by a lofty 3.4% year-on-year, according to May's reading. The Fed promised to let this pandemic economy run hot, which is the right thing to do. Exactly how high they are willing to let inflation fly is anyone's guess.
 
Stock Market

The Standard & Poor's 500 Index finished the day at a brand new record high: 4,290.61.

 =======

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

=======

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 United States Prime Rate will continue at the current 3.25% after the July 28TH, 2021 FOMC monetary policy meeting: 100% (certain.)

    ==========

=========


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

>  SITEMAP  <

Wednesday, June 16, 2021

Fourth FOMC Meeting of 2021 Adjourned: United States Prime Rate Holds At 3.25%

U.S. 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 fourth monetary policy meeting of 2021 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.

Progress on vaccinations has reduced the spread of COVID-19 in the United States. Amid this progress and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement. Inflation has risen, largely reflecting transitory factors. 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. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation having run 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; Thomas I. Barkin; Raphael W. Bostic; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Mary C. Daly; Charles L. Evans; Randal K. Quarles; and Christopher J. Waller..."

==========



==========

 

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

>  SITEMAP  <





FedPrimeRate.com
Entire Website © 2021 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.