Major U.S. Banks Raise Prime Lending Rates to 7.00 Percent

Several major financial institutions increased their prime lending rates on September 16, 2026, moving the benchmark from 6.75 percent to 7.00 percent. KeyCorp, U.S. Bancorp, and The Bank of New York Mellon Corporation all announced the 25 basis point increase, which becomes effective on September 17.

These rate adjustments follow a decision by the Federal Reserve System to raise rates for the first time since 2023. Federal Reserve officials cited that inflation remains too high as the primary driver for the move.

The prime rate serves as a critical benchmark for a wide array of business and consumer financial products. The increase will directly impact the cost of borrowing for credit cards and home equity lines of credit. KeyCorp, which manages approximately $191 billion in assets, is among the largest bank-based financial services firms in the United States to implement the change.