The Wall Street Journal Prime Rate (WSJ Prime Rate) is a measure of the U.S. prime interest rate, the interest rate banks charge their most creditworthy customers. It is the basis for all other prime rates in the United States and is published by the Wall Street Journal. The prime rate is usually set by the Federal Reserve, but some banks may set their own prime rates independently from the Federal Reserve. The prime rate has an effect on many aspects of the U.S. economy, including consumer loans, credit cards, and home equity loan interest rates. It is an important financial benchmark, as it can affect the availability and cost of credit for both businesses and individuals alike.

The WSJ Prime Rate is the average of the prime rates of 10 large U.S. banks, including HSBC, Citibank, and JPMorgan Chase. The 10 banks chosen are considered to be representative of the larger U.S. banking system as a whole. This average is then published in the Wall Street Journal each time one or more of the banks in the average changes its prime rate. When the Federal Reserve updates its Federal Discount Rate, the published WSJ Prime Rate is usually modified within a few days of the change depending on how the other 9 banks in the average react.

The WSJ Prime Rate provides a good general indicator of the current cost of credit for both individuals and businesses and can have a big effect on the cost of borrowing money. Banks use prime rates as the base rate when setting their interest rates for loans and other credit products. This means an increase or decrease in the WSJ Prime Rate will lead to a corresponding increase or decrease in the cost of credit for businesses and individuals alike. In addition, consumers and businesses often use the prime rate as a reference point when negotiating the interest rates for loans and other forms of credit.

The Wall Street Journal Prime Rate is an important benchmark for the state of the U.S. economy and its borrowing costs. It is important for both businesses and individuals to be aware of the current prime rate so they can plan accordingly. By keeping an eye on the prime rate, individuals and businesses can make sure they are getting competitive interest rates on loans and credit products in a cost effective manner.