The current Federal Reserve interest rate, or federal funds rate, is 4.25% to 4.50% as of Dec. 14, 2022. On Dec. 14, the Fed raised interest rates by 0.50%, the seventh rate hike this year. The Fed decided to raise interest rates by 50 basis points, a step down from the 75-basis point pace seen over the previous four meetings. The Fed’s rate hikes of 4.25% this year is the fastest cycle in history, pushing borrowing costs to a 15-year high. According to its recent statement, the Fed’s overarching goal is to return inflation to its 2% objective.
The current Bank of America, N.A. prime rate is 7.50% (rate effective as of December 15, 2022). The prime rate is set by Bank of America