Question

what is the current discount rate and prime rate in the US ? What have been the changes in these rates over the last 5 years?

Answer #1

Answer>

The current discount rate in US is 0.25%

The current Wall street journal prime rate is 3.25%

Discount rate -

In the last 5 years, the discount rate has reduced from 0.75% to 0.25%. If we do a deeper analysis, from the 3rd quarter of 2016 to July 2019, the discount rates steadily increased from 0.75% to 3%. After this, till February 2020, it steadily declined from 3% to 2.25%. After February 2020, it has shown a steep decline from 2.25% to 0.25%, its present value.

Prime rate -

In the last 5 years, the prime rate has reduced from 3.75% to 3.25%. If we do a deeper analysis, from December 2016 to December 2018, the prime rates steadily increased from 3.75% to 5.5%. After this, till December 2020, it steadily declined from 5.5% to 3.25%.

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