Money has been weird lately. If you've looked at your credit card statement or tried to price out a small business loan this week, you probably noticed things aren't quite as painful as they were a year ago, but they definitely aren't "cheap."
Right now, the prime interest rate today in the US is 6.75%.
That number didn't just fall out of the sky. It’s the direct result of the Federal Reserve’s December 2025 meeting, where they trimmed the federal funds rate down to a range of 3.50% to 3.75%. Since the "Prime" is almost always exactly 3% higher than the Fed's target, we landed at this 6.75% mark. It’s the lowest we’ve seen in years, honestly.
Why this number actually matters to your wallet
Most people hear "Prime Rate" and think it’s some dry corporate stat for suit-and-tie bankers in Manhattan. Kinda true, but mostly wrong. The prime rate is basically the base camp for almost every consumer loan in America.
If you have a credit card with a "variable APR," that rate is usually "Prime + [some percentage]." When the prime rate drops to 6.75%, your credit card interest eventually follows. The same goes for Home Equity Lines of Credit (HELOCs). If you’re sitting on a HELOC, your monthly payment just got a little breathing room compared to the 8.50% peaks we saw back in 2023 and 2024.
Small businesses feel this the most. Most commercial lines of credit are tied directly to this 6.75% figure. When it stays steady, businesses can actually plan their hiring or inventory for the spring. When it jumps, everything freezes.
What is the prime interest rate today in the us and where is it going?
The big question isn't just what the rate is today—it’s whether you should wait to borrow until it drops more.
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Honestly, the "waiting game" is getting risky. The Federal Open Market Committee (FOMC) is heading into their January 28 meeting with a lot of mixed signals. We just saw some "sticky" inflation data, and the labor market isn't cooling off as fast as some expected.
While the markets were hoping for a series of cuts throughout 2026, big players like J.P. Morgan are now warning that we might be stuck at this 6.75% prime rate for a long time. Their chief U.S. economist, Michael Feroli, recently suggested the Fed might even hold steady through the entire year.
The disconnect between Prime and Mortgages
Here’s a nuance people often miss: just because the prime rate is 6.75% doesn't mean mortgage rates are doing the same thing.
Mortgages usually track the 10-year Treasury yield, not the prime rate. That’s why you might see the prime rate stay flat while 30-year fixed mortgages bounce around 6.06% or 6.18%. If you're looking for a house, don't wait for the prime rate to hit 4%—it might never happen in this economic cycle.
We are currently in what experts call "normalization." The era of "free money" (0% interest) is over. This 6.75% prime rate is actually much closer to the historical average than the rock-bottom rates of the early 2020s.
Real-world impact: A quick look at the math
Let's say you have a $50,000 balance on a variable-rate business loan.
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- At an 8.50% prime rate (mid-2023), your annual interest was $4,250.
- At today's 6.75% prime rate, that same interest is $3,375.
That’s nearly $900 back in your pocket annually. It’s not "buy a private island" money, but it’s "fix the van" or "hire a part-time kid" money.
What most people get wrong about the Fed
There's a common myth that the Fed "sets" the prime rate. They don't.
Individual banks—think Chase, Wells Fargo, Bank of America—technically set their own prime rates. However, they almost always move in lockstep with the Wall Street Journal's survey of the 30 largest banks. And those banks always base their number on the federal funds rate.
It’s a chain reaction. The Fed moves the lever, the banks move the prime rate, and your bank moves your credit card APR.
Is a "Blackout" coming?
We are currently in the Fed's "blackout period." This started on Saturday, January 17. This means you won't hear Jerome Powell or Philip Jefferson giving speeches or hints about the next move until after the January 28 meeting.
This silence usually makes the market jumpy. Without the Fed "whispering" to investors, every little piece of economic data—like unemployment claims or retail sales—gets overanalyzed. If you're planning a major financial move, expect some volatility over the next 10 days.
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Actionable steps for your finances right now
Since the prime interest rate today in the us is sitting at 6.75%, you have a window of relative stability. Here is how to play it:
1. Audit your variable debt Check your latest credit card and HELOC statements. Ensure your bank actually lowered your rate to reflect the December cuts. Sometimes they’re slow on the draw, and a quick phone call can save you a few bucks.
2. Lock in "Fixed" where it makes sense If you’ve been waiting to refi a high-interest personal loan or a bridge loan, 6.75% is a decent benchmark. If the Fed pauses in January (which is looking likely), these rates won't get much better for a while.
3. Don't bet on 5% Many people are "holding out" for the prime rate to drop back to 5% or lower. Most economists, including those at Goldman Sachs, think we'll see a total of maybe two or three more small cuts in 2026 at most. Waiting six months to save 0.25% might cost you more in the long run if prices for homes or equipment go up in the meantime.
4. Watch the January 28 announcement Set a calendar alert. If the Fed holds steady, the 6.75% prime rate is here to stay for the spring. If they cut again—which would be a surprise—you should move immediately on any financing needs before the market recalibrates.
The "Prime" is basically the heartbeat of the US economy. Right now, that heart is beating at a steady 6.75%. It’s not a sprint, and it’s not a crawl. It’s just... normal. And in this economy, normal is actually a pretty good place to be.