However, the benchmark prime rate published in The Wall Street Journal -- which is based on the 10 largest U.S. banks -- generally moves in tandem with the federal funds rate. According to the Journal, as of early January 2024, the prime rate in the United States was 8.5%. The highest prime rate in history was 21.5% in December 1980, and the lowest on record was 3.25% in both December 2008 and March 2020.
Generally, the prime rate is three percentage points higher than the top end of the federal funds rate target range. When the rate bottomed out at 3.25%, the federal funds rate was set between 0% and 0.25%. As of January 2024, the federal funds rate range was between 5.25% and 5.5%, which explains the prime rate of 8.5%.