After the Fed on Wednesday raised its target for the federal funds rate to 5 percent, most banks began boosting the prime rate they charge their best customers to 8 percent from 7.75 percent.
The prime rate has risen from 4 percent in June 2004, and is at its highest level since April 2001.
Yup, that's about when the economy started going sour the last time. Are there really economic cycles or is it just the Fed trying too hard? Maybe last time and this time the answer is the latter?