U.S. Banks Raise Prime Rate to 7%

Dana Whitfield · 2026-09-17T01:20:28.507Z

This rate hike will squeeze borrowers just when the economy needs stability most.

U.S. Banks Raise Prime Rate to 7% — Photo: AlexiusHoratius / Wikimedia Commons (CC BY-SA 3.0)

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Several major U.S. banks raised their prime lending rates to 7.00% from 6.75% following the Federal Reserve’s quarter-point interest-rate increase. U.S. Bank and BNY said their new rates would take effect September 17, 2026, while Fifth Third also announced a return to 7.00% after keeping its prime rate at 6.75% since December 2025. JPMorgan and KeyCorp likewise moved to the higher rate. The prime rate is a benchmark for products including credit cards and personal loans, so the increases are expected to raise borrowing costs for consumers and businesses. Higher rates may bolster banks’ net interest income but could weaken loan demand and pressure borrowers’ credit quality, even as banking executives described the economic outlook as broadly resilient.

U.S. Banks Raise Prime Rate to 7%

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