U.S. Prime Rate Today After the Fed’s December 10, 2025 Cut: 6.75% Becomes the New Benchmark

Dateline: December 10, 2025

The Federal Reserve just delivered its third interest rate cut of 2025, and U.S. banks are already moving to reset the prime rate, the key benchmark that underpins everything from credit cards to home equity lines of credit.

Here’s what changed today, where the U.S. prime rate now stands, and what the latest forecasts and expert analyses say about where it’s headed next.

Fed cuts rates again – and sets up a new prime rate

At its meeting on December 10, 2025, the Federal Reserve lowered the target range for the federal funds rate by 0.25 percentage points to 3.50%–3.75%. It was a split decision, with the Federal Open Market Committee (FOMC) voting 9–3, including dissenters who wanted either no cut or a larger reduction. ^[1]

In its statement, the Fed said:

Economic activity is expanding at a moderate pace
Job gains have slowed and unemployment has edged higher
Inflation has moved up since earlier in the year and “remains somewhat elevated” ^[2]

This move marks the third rate cut in a row following reductions in September and October, adding up to a substantial easing cycle since late 2024. ^[3]

Because the prime rate is typically about three percentage points above the federal funds rate, a lower Fed rate almost automatically implies a lower prime. ^[4]

With the top of the funds range now at 3.75%, the “textbook” prime rate level is:

3.75% (upper end of fed funds range) + 3.00 percentage points ≈ 6.75%

And that is exactly what we’re now seeing.

Prime rate today: 6.75% becomes the new U.S. benchmark

A widely followed tracker of the Wall Street Journal (WSJ) U.S. prime rate reports that, following today’s Fed decision, the current U.S. prime rate is now 6.75%, down from 7.00% previously. The site notes that after the Fed voted to lower the funds rate to 3.50%–3.75%, “the United States Prime Rate is now 6.75%.” ^[5]

That shift reflects how the WSJ prime works: when a supermajority of the largest U.S. banks adjust their posted prime lending rates to a new level, the Journal publishes that number as the official “U.S. prime rate.” ^[6]

What big banks were charging before today

Before this latest move:

JPMorgan Chase, Bank of America, Wells Fargo and Citibank all had their prime rates set at 7.00%, after cutting from 7.25% in September and 7.50% in late 2024. ^[7]
Federal Reserve data (H.15) similarly showed the bank prime loan rate at 7.00% as of October 30, 2025. ^[8]

Following prior Fed cuts, major banks typically moved within hours or a day to match the new benchmark. For example, after the Fed’s September 17 cut, JPMorgan, Citigroup, Wells Fargo and Bank of America lowered their prime rates from 7.50% to 7.25% almost immediately. ^[9]

Early movers: regional banks cut to 6.75%

Today, we’re already seeing the first public announcements of prime rate cuts to the new level:

Fifth Third Bank said it is decreasing its prime lending rate to 6.75%, effective immediately, down from 7.00%. ^[10]
KeyCorp likewise announced it will lower its prime lending rate to 6.75% from 7.00%, effective December 11, 2025. ^[11]

Together with the WSJ benchmark update to 6.75%, these moves strongly indicate that 6.75% is now the operative U.S. prime rate, and big national banks are likely in the process of matching it, even if some official web pages still show 7.00% at this exact moment.

Bottom line for “prime rate today” (Dec. 10, 2025):
The widely referenced U.S. prime rate is now 6.75%, and major banks are beginning to price loans at this level, down from 7.00%.

How the new prime rate affects you: credit cards, HELOCs and loans

Credit cards: Relief, but not a miracle

Most variable-rate credit cards are priced as prime + a margin, so when prime drops, card APRs generally fall by the same 0.25 percentage points—though often with a lag of a billing cycle or two. ^[12]

A fresh analysis from Reuters notes that even after today’s moves, average APRs on new credit card offers are about 23.96%, down slightly from last year’s peak but still very high. ^[13]

Because Americans hold large balances, even a small change adds up: the article estimates that the latest 0.25‑point cut could save households roughly $1.9 billion in interest over the next 12 months, assuming banks pass through the full reduction. ^[14]

What it means for you:

Expect a small drop in your variable APR, likely visible in your statement within one or two cycles.
The savings are real but modest; experts quoted by Reuters emphasize using any rate relief to pay down balances faster, not to rack up new debt. ^[15]

HELOCs and other prime‑linked loans: The quickest impact

If you have a home equity line of credit (HELOC) or a small business line tied directly to the prime rate, this is where the Fed’s move is felt most clearly.

Many HELOCs are priced at terms like “prime + 1%” or “prime + 2%.”
When prime falls from 7.00% to 6.75%, that 0.25‑point drop should pass through almost entirely to your line rate, usually within one or two billing periods. ^[16]

On a $50,000 HELOC balance, a quarter‑point reduction could cut interest costs by around $125 per year, before taxes, assuming the balance stays about the same.

Small businesses with revolving lines of credit tied to prime will see similar proportional savings.

Mortgages: Connected to the Fed, but indirectly

Fixed-rate mortgages don’t move in lockstep with either the Fed or the prime rate. Instead, they’re more sensitive to longer-term Treasury yields and the market’s broader view of inflation and growth.

Recent coverage notes that:

30‑year mortgage rates have been hovering in the low‑6% range, around 6.19%–6.30%, with refinance rates near 6.5%. ^[17]
The Fed’s cuts can nudge those yields lower over time, especially if markets lock in expectations for slower growth and more easing, but the effect is gradual rather than instant. ^[18]

Experts cited by Reuters and other outlets say they’re cautiously optimistic that 30‑year mortgage rates could dip below 6% at some point in 2026, which would likely trigger another wave of refinancing. ^[19]

Adjustable‑rate mortgages (ARMs) that are explicitly indexed to prime (or to shorter‑term rates like SOFR) will respond more directly, though usually at scheduled reset dates.

Savers: Lower prime, lower yields

It’s not all good news. Lower policy rates and a lower prime rate also tend to push down deposit yields over time.

Reuters notes that: ^[20]

The average U.S. savings account yield is still just around 0.6%,
While the most competitive high‑yield savings accounts offer 4% or more—but those headline rates have already come down from their 2023–2024 peaks.

As the rate‑cutting cycle continues, banks have less incentive to pay up for deposits, which means savers may see gradually shrinking APYs unless they actively shop around or lock in rates via longer‑term products like certificates of deposit (CDs).

What the Fed signaled about future rates – and what it implies for prime

The Fed’s own forecast: Just one more cut in 2026

Alongside today’s decision, the Fed released an updated Summary of Economic Projections (“dot plot”). Media reports summarizing the projections highlight that:

Policymakers still see only one additional quarter‑point cut in 2026 as their median forecast. ^[21]
They also pencil in one further cut in 2027, with the longer‑run federal funds rate hovering around 3%. ^[22]

In other words, the Fed’s official baseline is not a rapid return to the ultra‑low rates of the 2010s, but rather a gradual drift down toward a “neutral” range.

Given that prime usually sits about 3 percentage points above the funds rate, a funds rate settling near 3% would suggest a long‑run prime rate around 6%—not dramatically lower than today’s 6.75%. ^[23]

Independent forecasts: Prime could slip into the mid‑5s

Private forecasters are somewhat more dovish than the Fed:

The Financial Forecast Center projects that the WSJ prime rate will average about 6.83% in December 2025, then 6.72% in January 2026, before sliding toward roughly 5.0% by mid‑2026 as additional cuts feed through. ^[24]
Trading Economics expects the average prime lending rate to trend around 6.50% in 2026 and 6.25% in 2027, implying a slow but steady easing path. ^[25]
Economists at ING see room for two more Fed cuts in 2026 beyond what the Fed is currently signaling, arguing that cooling inflation and a softer labor market will justify more easing than the official dot plot shows. ^[26]

If those more dovish forecasts prove right, the prime rate could plausibly drift into the mid‑5% range over the next 18–24 months, though that is far from guaranteed and heavily dependent on inflation, growth and politics.

Why the Fed is treading carefully

Several factors explain why the Fed is easing but not slamming on the gas:

Growth is slowing, but not collapsing. The Fed describes economic activity as expanding at a “moderate” pace, with some cooling in job gains but no outright recession. ^[27]
Inflation is still above the 2% target, even though it has retreated from its post‑pandemic peaks. ^[28]
There is growing dissent inside the Fed. ING notes that two officials preferred no cut at all today, while another argued for a larger 50‑basis‑point move, illustrating the divide over how aggressive easing should be. ^[29]

That tension explains why markets are betting on more cuts than the Fed is publicly projecting, and why prime rate forecasts vary widely.

What consumers and small businesses can do now

While no article can replace personalized advice, today’s Fed decision and the new 6.75% prime rate suggest a few practical steps many people can consider:

Check the index on your loans.
- If your credit card APR or HELOC is explicitly tied to prime, you should see a 0.25‑point reduction as banks adopt the new 6.75% rate.
- Watch your next one or two statements to confirm the new rate is reflected.
Use the rate cut to accelerate debt payoff.
With average card APRs still near 24%, experts quoted by Reuters stress that even small savings should be used to pay down high‑cost balances faster, not to justify more spending. ^[30]
Shop aggressively for better rates.
- On the borrowing side, compare personal loans or balance transfer offers that might beat your current card or line‑of‑credit rate.
- On the saving side, don’t settle for sub‑1% yields when reputable banks are still paying multiple percentage points more on high‑yield savings or CDs. ^[31]
Plan – but don’t over‑rely – on future cuts.
Forecasts suggest the prime rate could trend lower over 2026, but the Fed’s own projections are cautious, and the committee is divided. It’s risky to take on new debt assuming much cheaper money is guaranteed in a year or two. ^[32]
If you own a business, revisit pricing and cash‑flow models.
Lower interest expense on variable‑rate credit lines can marginally improve margins; at the same time, softer economic growth might pressure revenue. Many CFOs use Fed days like this to re‑run scenarios and stress‑test their 2026–2027 plans.

The takeaway: A lower prime rate, but not a return to “free money”

Today’s move pulls the prime rate down to 6.75%, offering modest relief to borrowers with prime‑linked debt and nudging the overall interest‑rate environment a bit closer to normal after years of volatility.

But the era of near‑zero rates remains firmly in the rear‑view mirror. The Fed’s own forecast, combined with outside projections, points to a world where:

The federal funds rate hovers near 3% in the long run
The prime rate likely settles somewhere in the 6%–6.25% zone, with a possibility—but not a promise—of drifting into the mid‑5s if the economy softens more than the Fed expects. ^[33]

For now, the most practical takeaway is simple:

Prime just fell from 7.00% to 6.75%.
If your rates float with prime, your borrowing costs are heading lower—just a little—but whether that helps your finances will depend on what you do with the savings.