NEW YORK (AP) – Several major banks have already announced they’re raising their prime rates following the Fed’s decision to raise its federal funds rate target by a quarter point. Bank of America said Thursday evening that it was increasing its prime lending rate to 3.5 percent effective immediately. Citibank, M&T Bank and PNC Financial plan to make the change effective Thursday. They join other banks that have announced similar moves, including Wells Fargo, JPMorgan Chase and U.S. Bancorp. A bank’s prime rate is the interest rate banks use to price several of its consumer products, including auto loans and credit cards. The federal funds rate is the interest banks charge each other overnight. Fed officials voted unanimously Wednesday to raise the rate to a range of 0.25 percent to 0.5 percent, up from near-zero for the first time since December 2008.
