Weekly
This dataset tracks weekly over time.
Latest Value
7.50
Year-over-Year Change
0.00%
Date Range
8/10/1955 - 8/6/2025
Summary
The Weekly Prime Loan Rate (WPRIME) represents the interest rate that commercial banks charge their most creditworthy corporate customers for short-term loans. This benchmark rate is a critical indicator of lending conditions and overall financial market health.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The WPRIME reflects the base lending rate for top-tier corporate borrowers, serving as a key reference point for various financial products and credit markets. Economists and financial analysts closely monitor this rate to assess credit availability and banking sector dynamics.
Methodology
The rate is determined weekly by surveying major commercial banks and calculating the most frequently quoted prime rate for corporate lending.
Historical Context
Policymakers and financial institutions use the WPRIME as a fundamental benchmark for setting interest rates on loans, credit cards, and other financial instruments.
Key Facts
- Represents the lowest commercial lending rate for top-tier corporate customers
- Updated weekly to reflect current market conditions
- Serves as a foundational reference rate for multiple financial products
FAQs
Q: How is the prime rate determined?
A: The prime rate is calculated based on the federal funds rate and the rates quoted by the largest U.S. banks. It typically tracks the Federal Reserve's monetary policy decisions.
Q: Who uses the prime rate?
A: Banks use the prime rate as a baseline for setting interest rates on various lending products, including business loans, credit cards, and adjustable-rate mortgages.
Q: How often does the prime rate change?
A: The rate can change whenever the Federal Reserve adjusts its benchmark interest rates, which typically occurs during Federal Open Market Committee (FOMC) meetings.
Q: How does the prime rate impact consumers?
A: Changes in the prime rate directly affect the interest rates consumers pay on variable-rate loans and credit products, influencing borrowing costs across the economy.
Q: What are the limitations of the prime rate?
A: The prime rate represents only the most creditworthy borrowers and does not reflect rates for all customers or all types of loans.
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Citation
U.S. Federal Reserve, Weekly [WPRIME], retrieved from FRED.
Last Checked: 8/1/2025