Feds boost Interest Rates again adding an additional $1.7 billion in credit card bills

Inflation Graph The Fed has continued its rate hikes to battle still-high inflation. By raising the cost of borrowing, the central bank hopes to rein in spending and bring prices under control

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • What the Fed’s rate hike means for your wallet: Quarter-point increase will add $1.7 billion to US credit card bills over the next year
  • The Fed on Wednesday boosted its benchmark rate a quarter percentage point, to a range of 4.75 percent to 5 percent, its highest level in 16 years and up from near zero a year ago.
  • The latest rate increase will cost American credit card users a collective $1.7 billion in added interest charges over the next 12 months, according to a study from WalletHub.
  • That’s on top of the $30.4 billion more in credit card interest charges the study chalks up to the Fed’s prior rate hikes since last March, when the central bank’s policy rate was near zero
  • Government data shows that the amount of consumer loans, including credit cards and other revolving plans with commercial banks, soared to $965.6 billion on March 8. That’s up from $830 billion at the same time last year.

Read the original article by clicking here.

Leave a Reply