US Banks Raise Prime Rate to 7% Following Fed Hike

On September 17, 2026, in response to the Federal Reserve's recent interest rate hike, major U.S. banks, including JPMorgan Chase & Co JPM, have increased their prime lending rate from 6.75% to 7%. This adjustment aligns with the Fed's 25 basis point increase and will have implications for various loans and credit products.

JPMorgan Chase offers a dividend yield of 1.73%, which is relatively modest but reflects a commitment to returning value to shareholders. The company's payout ratio is sustainable, indicating that it can maintain its dividend payments even in challenging economic conditions.

According to GuruFocus, the GF Value for JPMorgan Chase is $317.50, while the current price is $347.04, indicating that the stock is approximately 9.3% overvalued. This valuation suggests that while the dividend is attractive, investors should be cautious about the stock's current price relative to its intrinsic value.

JPMorgan Chase has a GF Score of 83/100, indicating strong overall performance, particularly in growth and momentum. However, its financial strength is rated lower, which may warrant further investigation.