Well, for credit card users with balances still on their cards, the subsequent changes in prime rates could affect user's interest rates on their cards and thus, the amount of cash they're dealing with.
They're Still Hanging On.
What the Fed Minutes Are Saying The minutes certainly read like the Fed is more worried about the economy than just what the data suggests.
Here's a breakdown of what could happen to your student loan tab, savings account, mortgage, car loan and credit card.
Unlike the prime rate, Libor is the rate at which fellow banks lend each other funds typically short term. Skip to main content.
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The prime rate is considered a benchmark only, and though it is likely to be the lowest announced rate available, it should not be considered a mandatory minimum.
The rate hike is the eighth during Trump's presidency. The world's most accurate economic forecaster pinpoints the biggest risks investors will face in 2019 — and explains how they can prepare.
This acts as a ceiling, since banks won't want to lend to one another at a rate lower than what the Fed is paying them — at least in theory. Just be sure to check the fees and terms, he cautioned, because those offers aren't as generous as they used to be. More from Personal Finance: Share this video... News Tips Got a confidential news tip?
Additionally, Fed hikes can affect mortgage rates as well. That indicated the high level of irrational fear between banks.How Interest Rates Are Set: The Fed's New Tools Explained
What the prime rate means for you. As the Fed continued to lower its rate, the prime also fell. Other loans that can be affected by changes to the prime rate include mortgages, car loans and student loans with adjustable rates. The Fed's new rate is up 0.