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Fed interest rate hike could impact credit card APR


FARGO, N.D. (Valley News Live) – The federal reserve continues to fight back against high inflation by announcing a new interest rate hike.

“The FMOC has raised its policy interest rate by three-quarters of a percentage point. We anticipate ongoing increases will be appropriate,” said Jerome Powell, the chair of the Federal Reserve.

Some local consumers say they are disturbed by the news.

“Everything is so high already and it’s hard to live even when you are working 40 hours a week,” said Loree Berg.

The hike could create a domino effect, impacting things like mortgage and credit card interest rates.

“Banks do have the potential to increase rates,” said Dr. Angel Carrete, an assistant professor of finance at Concordia College.

Most credit card companies base their variable rates on the prime rate, which is tied to the federal funds rate.

Any increase in APR means it may take longer to pay down existing credit card debt.

Read full article at www.valleynewslive.com