Do You Have Credit Card Debt? The Fed’s Rate Hike Could Cost You
The Federal Reserve is widely expected to announce an interest rate hike on Wednesday, and the consensus is calling for a 25-basis-point increase. While many types of consumer interest rates, such as mortgage and auto loan rates, are not directly affected by the Fed's interest rate activity, credit card interest rates are.
Unlike mortgage rates, auto loan rates, and the interest paid on savings accounts, credit card interest rates are directly tied to the Federal Funds Rate, which is the benchmark interest rate that the Fed controls.
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Source: Fool.com
