www.FedPrimeRate.com
www.FedPrimeRate.com: The US Prime Lending Rate Prime Rate Forecast www.FedPrimeRate.com
www.FedPrimeRate.com

U.S. Prime Rate Glossary

Prime Rate  |  Current Prime Rate  |  Prime Rate History  |  Prime Rate Forecast  |  SITEMAP
Mortgage Refi | Credit CardsEconomy | Life InsuranceLIBOR
FREE Credit Reports  |   Prime Rate FAQ  |  International Prime Rates  | Mortgage Rates
The U.S. Prime Rate: A benchmark, short-term interest rate used in the banking system of the United States. The Prime Rate serves as an index or base rate for many types of loans and credit products for both businesses and consumers. The Prime Rate is invariably 3.00 percentage points (300 basis points) above the benchmark Fed Funds Target Rate. The U.S. Prime Rate is also known as the Wall Street Journal (WSJ) Prime Rate, the Fed Prime Rate and the national Prime Rate.

The Fed: The United States Federal Reserve System, which acts as America's central bank.

The FOMC: Short for the Federal Open Market Committee. Made up of seven Federal Reserve Governors plus five Federal Reserve Bank presidents, the FOMC is the group within the Federal Reserve system that makes decisions on short-term interest rates, the most potent of which is the Fed Funds Target Rate (FFTR). The FOMC meets 8 times per year to set rates, and the group may also hold an emergency meeting at any time, if an intermeeting adjustment for short-term rates is expedient.

The Fed Funds Rate: The rate at which American banks borrow overnight funds from each other, via one of the 12 regional Federal Reserve banks. The Fed sets a target for the fed funds rate, and it is this target that serves as the main benchmark interest rate for the United States. The target for the fed funds rate influences other key financial market indexes, both domestic and global, like the U.S. Prime Rate and the London Interbank Offered Rates (LIBOR).

    • The Fed uses the FFTR to regulate the American economy, lowering it when the economy needs a boost, and raising it when the pace of inflation is too high. The FFTR was adopted as the Fed's main monetary policy tool back in 1990.

Intermeeting Rate Adjustment: This is when the Federal Open Market Committee (FOMC) convenes an unscheduled monetary policy meeting in order to make adjustments to short-term interest rates, i.e. the Fed Funds Target Rate and/or the discount rate. This type of FOMC gathering is also called an emergency meeting.

Short-Term Rates: The short-term interest rates that are controlled by the U.S. Federal Reserve, i.e. the Fed Funds Target Rate, the U.S. Prime Rate and the discount rate.

by Steve "AmCy" Brown, FedPrimeRate.comSM
SCAM ALERT!
Prime Rate  |  Current Prime Rate  |  Prime Rate History  |  Prime Rate Forecast  |  SITEMAP
Certificate of Deposit | Credit CardsEconomy | Life InsuranceLIBOR
Student Credit Cards   |   Prime Rate FAQ  |  International Prime Rates  | Mortgage Rates

Latest Norton Antivirus Protection Renewal Scam In My Email Inbox

CHART: NYMEX WTI Crude Oil Price History | New York City Rent Is Too High!

My Uncle Got Sucked Into A "Home Depot" Phishing Scam | New York City Rent Is Too High!

Prime Rate  |  Current Prime Rate  |  Prime Rate History  |  Prime Rate ForecastSITEMAP
Prime Rate Chart  |  Credit Cards |  Economy  |  Life Insurance  
 LIBOR Rates   | DAILY LIBORCertificate of Deposit   |   Prime Rate FAQ
International Prime Rates    |    Mortgage Rates

Dow Jones Industrial Average FULL HISTORY | NASDAQ Composite Index FULL HISTORY

Standard & Poor's 500 Index FULL HISTORY | CHART: Dow Jones Industrial Average (DJIA)

CHART: NASDAQ Composite Index  |  CHART: S & P 500 Index


Chart: U.S. Prime Rate vs. Fed Funds Target Rate vs. 1-Month LIBOR vs. 3-Month LIBOR

Chart: Prime Rate vs. 15 & 30 Year Fixed-Rate Mortgages vs. 10-Year Treasury Yield


bing

bing

FedPrimeRate.com
Page copy protected against web site content infringement by Copyscape Privacy Policy copyright © 2025 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.