Big U.S. banks lower prime lending rates after Fed rate cut

Major U.S. lenders lowered a key interest rate today, providing U.S. consumers a reprieve on borrowing costs, after the Federal Reserve cut interest rates for the first time this year.

JPMorgan Chase, Citigroup, Wells Fargo and Bank of America lowered their prime lending rates to 7.25% from 7.50% following the Fed’s first cut, by 25 basis points, since December.

The prime rate, or the interest rate that commercial banks charge their most creditworthy customers – typically large corporations – serves as the baseline for setting interest rates on mortgages, small business and personal loans and credit cards, among others.

With inflation still above the Fed’s 2% target and the price impact of U.S. President Donald Trump’s tariffs uncertain, the rate cut indicates the Fed is now more concer