Kevin Ryan, CPA/Partner, Citrin Cooperman
The Global Business Travel Association (GBTA) believes business travel is a fundamental force for good and brings the industry together to connect, innovate and set new standards. With members from across the globe, GBTA engages the many voices of business travel to build a collective future, providing a platform for buyers and suppliers to come together, connect with peers, grow their network and shape the future of the industry.
THE FEDERAL FUNDS RATE is the interest rate targeted by the Federal Reserve. It is the interest rate banks charge each other for overnight loans. After the recent cut on Oct. 30, 2019, the third cut this year, the rate will hover between 1.5 percent and 1.75 percent. The federal funds rate is not the rate used by banks for lending to individuals and businesses; that is the prime interest rate, currently at 4.75 percent. Since 1994 banks commonly calculate the prime interest rate as the federal funds rate plus 3 percent (in this case 1.75 percent plus 3 percent). Every U.S. bank sets its own prime rate; however, most utilize the same one.