>The feds sets the prime rate... Just to clarify, the Fed doesn't directly set the prime rate, though it does have influence on it: >...Although the Federal R

>The feds sets the prime rate... Just to clarify, the Fed doesn't directly set the prime rate, though it does have influence on it: >...Although the Federal Reserve has no direct role in setting the prime rate, many banks choose to set their prime rates based partly on the target level of the federal funds rate--the rate that banks charge each other for short-term loans--established by the Federal Open Market Committee. https://www.federalreserve.gov/faqs/credit_12846.htm https://www.federalreserve.gov/faqs/credit_12846.htm