Happy New Year: Wall Street Journal Prime Rate Stays At 4.25%

Happy new year? I think so, especially for folks who plan on borrowing this winter, as The Fed, in all their inflation-taming wisdom, voted to keep their target rate @ 1.25%. This means that you can bet your bottom dollar that The Wall Street Journal Prime Rate will stay at 4.25%. An auspicious start of the year for borrowers; Enjoy, and happy new year!

A snippet from today's press release by The Fed is below:

"Oil price premiums and other aspects of geopolitical risks have reportedly fostered continued restraint on spending and hiring by businesses. However, the Committee believes that as those risks lift, as most analysts expect, the accommodative stance of monetary policy, coupled with ongoing growth in productivity, will provide support to an improving economic climate over time.

In these circumstances, the Committee believes that, against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are balanced with respect to the prospects for both goals for the foreseeable future."