The Fed Held Rates. The Bank Prime Rate Stayed at 7%.

On October 28 the Federal Reserve held its federal-funds target at 3.75% to 4%, and the bank prime rate stayed at 7.00% in the days around that decision. Fox Business reported a 10-2 vote. Cleveland Fed president Beth Hammack and Governor Lisa Cook preferred another quarter-point increase. The hold followed September’s quarter-point hike.

The Board’s H.15 table, released October 30, shows an effective federal-funds rate of 3.88% on each listed day from October 23 through October 29, and prime at 7.00% on each of those days. The 10-year constant maturity was 5.05% on October 28 and 4.98% on October 29.

Prime is one base rate banks use for short-term business loans. Leaving it unchanged does not rewrite a fixed mortgage or an existing card contract. Chair Kevin Warsh said inflation has been above the 2% PCE goal for close to six years and that there is no softer target. This vote does not decide the next meeting.

Did the October 28 Fed hold lower a fixed loan payment you already have? No. The target range stayed at 3.75% to 4%, and the posted prime rate remained 7.00%. No change to an existing fixed payment was announced.