How the U.S. Prime Rate Is Set: From the Fed Funds Rate to Your Loan
The U.S. prime rate is 6.75%, but the Fed does not set it. Here is how banks derive prime from the federal funds rate and what it means for your loans.
Day June 9, 2026
The U.S. prime rate is 6.75%, but the Fed does not set it. Here is how banks derive prime from the federal funds rate and what it means for your loans.