Major U.S. banks raise prime rate after Fed move

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FILE PHOTO: JP Morgan Chase & Co. corporate headquarters in New York

(Reuters) -Major U.S. banks including JPMorgan Chase & Co, Wells Fargo Bank and Citibank have raised their prime rate to 4%, effective Thursday.

The base lending rate was hiked by 50 basis points, the banks said in different statements on Wednesday.

The decision comes after the U.S. Federal Reserve raised its overnight interest rate by half a percentage point, the biggest jump in 22 years.

(Reporting by Manya Saini and Shivani Tanna in Bengaluru; Editing by Anil D’Silva and Sherry Jacob-Phillips)