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Does the Federal Reserve control or set the prime rate?

April 26, 2017CONTROL federal reserve Prime rate

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Does the Federal Reserve control or set the prime rate?

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No. Banks set their own rates based on the demand for various kinds of loans, on the cost of money to the banks, and on the administrative costs of making loans.

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No, banks set their own rates based on the demand for various kinds of loans, the cost of money to the banks, and the administrative costs of making loans.