Wells Fargo & Co (NYSE:WFC) has increased its prime rate to 4.75% from 4.50%, effective March 22, 2018. This change came after the Federal Reserve made the first rate hike of 2018 at the recent FOMC meeting under the direction of Chairman Jerome Powell. The hike rate decision was prompted by the strengthening economy, growing labor market gains and optimism on attaining the inflation target. The benchmark fed funds rate has been increased to 1.50%-1.75% from the 1.25%-1.50% increase in December 2017.
Recently, John Silvia, the Chief Economist at Wells Fargo, talked on the expected number of Fed rate hikes and different factors impacting the decisions of central bank. He spoke with Francine Lacqua and Julia Chatterley on “Bloomberg Surveillance.” Depending on the economic projections, Fed anticipates inflation to remain at 1.9% this year, close to its target of 2%. In 2018, the unemployment rate is expected to decline to 3.8% compared to the prior forecast of 3.9%. It is projected to drop to 3.6% in 2019 compared to the earlier projection of 3.9%.
In an unrelated news, Bronstein, Gewirtz & Grossman, LLC stated that a class action case has been filed against Wells Fargo and certain of its staffs, on behalf of stockholders who bought or otherwise acquired stock of Wells Fargo between January 13, 2017 and July 27, 2017.
Wells Fargo was established in 1852 and has its headquarters in San Francisco with offices in 42 nations and territories to support clients who perform operations in the international economy. It is a diversified, community-led financial services firm with assets of $2.0 trillion. Its objective is to satisfy their consumers’ financial needs and support them succeed financially. Wells Fargo offers banking, mortgage, investments, and commercial and consumer finance through over 8,300 locations, the internet, mobile banking and 13,000 ATMs.