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.
Average Interest Rate on the National Debt Climbs to 3.35% in May
The average rate on U.S. interest-bearing debt rose to 3.353% in May, the highest since October 2025, as low-coupon debt refinances into higher market yields.
May Payrolls Add 172,000, Cementing a June Fed Hold and 6.75% Prime
U.S. employers added 172,000 jobs in May 2026 and unemployment held at 4.3 percent, reinforcing a June Federal Reserve hold and keeping the prime rate at 6.75 percent.
10-Year Treasury Yield Climbs Toward 4.5% as Oil Shock Revives Fed Hike Bets
The 10-year Treasury yield climbed toward 4.5% as an oil spike pushed markets to price an 85% chance of a 2026 Fed rate hike, even as the prime rate held at 6.75%.
ADP Says Private Payrolls Rose 122,000 in May, Pointing to a June Fed Hold
Private employers added 122,000 jobs in May, ADP reported June 3, a broad-based gain that reinforces the case for the Federal Reserve to hold rates at its June 16-17 meeting and keep prime at 6.75%.
Fed’s Bowman Defends Rate-Cut Path, Urges Looking Past Oil-Driven Inflation
Fed Vice Chair Michelle Bowman defended keeping rate cuts on the table in a May 29 speech, urging the Committee to look past oil-driven inflation before the June 16-17 FOMC.
Q1 GDP Revised Down to 1.6% as Profit Growth Stalls Before June Fed Meeting
U.S. GDP grew just 1.6% in Q1 2026, revised down from 2.0%, as corporate profit growth stalled and inflation stayed hot, keeping the Fed on hold and prime at 6.75%.
National Debt Tops $39 Trillion as Net Interest Nears $1 Trillion
U.S. public debt crossed $39 trillion in May 2026. With new Treasury issues yielding above 4.4% and the average rate at 3.34%, CBO projects net interest above $1 trillion this year.
April PCE Inflation Climbs to 3.8% as Core Stays at 3.3%, Pointing to June Hold
April PCE inflation rose to 3.8% year over year as core held at 3.3%, cementing a June Fed hold and keeping the prime rate at 6.75%. Here is what it means for your money.
Warsh Takes Office as Fed Chair, Signals Slower Cut Path Before June 17 FOMC
Kevin Warsh was sworn in May 22 as the 11th Fed chair after the closest Senate vote in modern history. His first FOMC is June 16-17 and markets now price a 65% chance of no cuts in 2026. Here is what changes for borrowers and savers.