Tennessee’s financial landscape adjusts weekly, and with it, the burden and boon of interest rates shape the dealings of citizens and institutions alike. In the latest update, Tennessee Department of Financial Institutions Commissioner Greg Gonzales has set a new bar. According to a press release from the
state’s website
, the maximum effective formula rate of interest in Tennessee is now 11.90 percent per annum, hinging its figure on the Federal Reserve’s latest data. Published yesterday, the Federal Reserve stated the weekly average prime loan rate at 7.90 percent, to which Tennessee attaches a 4 percent ceiling.
Commissioner Gonzales, navigating the week’s financial currents, asserts this rate will hold steady. “The rate remains in effect until the average prime loan rate as announced by the Federal Reserve Bank changes,” he declares. His announcement does not only inform but serves as a lever for economic decisions across the Volunteer State – for businesses seeking loans and consumers navigating credit. This rate tether, firmly anchored in the Federal Reserve’s announcement, ensures predictability in an ocean of economic variables, as detailed by the
Department of Financial Institutions.
The legal underpinning for such announcements stems from legislative measures, specifically Chapter 464 of the Public Acts of 1983. Enshrined in state law is the requirement for the commissioner of Financial Institutions to make public the formula rate of interest on a weekly basis.
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