Posted 1/31/2024, 5:03:21 PM
Fed Rate Hikes Drove Up Credit Card Rates, But Cuts Could Offer Some Relief
- The Fed has raised rates to over 5% in the past 2 years to curb inflation, but may start cutting rates soon which could reduce bills for borrowers
- Credit card rates quickly rise when the Fed hikes rates, but likely won't fall as fast if the Fed cuts rates
- Consumers should prioritize paying down high-interest debt like credit cards
- Some banks have started cutting rates they pay to consumers, including on certain CDs
- Mortgage rates have already fallen slightly in anticipation of potential Fed rate cuts