The Fed Holds Rates Steady So Don't Expect Changes to Your Credit Cards

Key Takeaways The Federal Reserve voted to hold rates steady at its meeting March 18-19. An unchanged federal funds rate means your credit card's APR likely won't be adjusted either. Credit card interest rates, on average, currently sit over 20%, according to the Federal Reserve. The Federal Reserve voted to once again hold its benchmark interest rate steady at this week's monetary policy meeting March 18-19, which means you shouldn't expect your credit card APRs to change. Although the federal funds rate only directly dictates lending between banks, the central bank's monetary adjustments are passed on to consumers, impacting financing rates on loans and credit cards. Raising or lowering the federal funds rate -- the overnight interest rate between banks -- creates a domino effect that can lead credit card issuers to increase or decrease their APRs, affecting how much you owe for carrying an outstanding balance. By holding rates steady, the Fed acted as many experts predicted. I ... Read full article.