• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

Final Hours to Get Windows 11 Pro with Copilot for Just $10

July 5, 2025

How to Deal With Negative Articles on Google

July 5, 2025

Squeeze a Whole Business Book into Your Lunch Break

July 5, 2025
Facebook Twitter Instagram
Trending
  • Final Hours to Get Windows 11 Pro with Copilot for Just $10
  • How to Deal With Negative Articles on Google
  • Squeeze a Whole Business Book into Your Lunch Break
  • The Real Currency Of Life, According To Naval Ravikant
  • This $6 Aldi Find Could Save You Hundreds of Dollars
  • How and Where to Sell Your Gold — and Make the Most Cash
  • 5 Things I Wish Someone Had Told Me Before I Became a CEO
  • How to Build a Side Hustle That Stands on Its Own — Without Burning Out
Sunday, July 6
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » A Fed pause likely won’t help struggling consumers
Credit Cards

A Fed pause likely won’t help struggling consumers

News RoomBy News RoomAugust 6, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

The Federal Reserve paused rate hikes on Wednesday’s marking the end to 10 straight increases which have driven borrowing costs above 5% squeezing consumers and creating headwinds for the economy. Policymakers also said there may be two more hikes this year. 

Despite the pause, Americans are unlikely to see any relief according to Greg McBride, CFA, chief financial analyst with Bankrate.com.

“A pause won’t bring borrowing rates lower, particularly for variable rate debt such as credit cards and home equity lines of credit that have increased in step with the Fed’s 10 previous interest rate hikes,” McBride said. “Elevated inflation and a strong labor market mean the Fed is nowhere close to cutting interest rates, so borrowers will continue to be dealing with high interest rates for months to come, even if the Fed doesn’t hike rates further.”

“A pause won’t bring borrowing rates lower, particularly for variable rate debt such as credit cards and home equity lines of credit that have increased in step with the Fed’s 10 previous interest rate hikes, elevated inflation and a strong labor market mean the Fed is nowhere close to cutting interest rates, so borrowers will continue to be dealing with high interest rates for months to come, even if the Fed doesn’t hike rates further.”

– Greg McBride, CFA, chief financial analyst with Bankrate.com.com

INFLATION COOLS SHARPLY IN MAY

Ticker Security Last Change Change %
V VISA INC. 238.99 +0.23 +0.10%
MA MASTERCARD INC. 391.35 -1.66 -0.42%
DFS DISCOVER FINANCIAL SERVICES 102.36 -0.23 -0.22%

Rates for auto loans, credit cards and mortgages have all trended higher in recent months leaving consumers with less cash. 

“Home equity rates are the highest in more than 20 years, credit card rates are the highest on record, auto loan rates are the highest since 2010, and mortgage rates are again flirting with 7%, a relic of two decades ago.” McBride also says paying down high cost, variable rate debt is an urgent priority for households.

RATE SQUEEZE

Mortgage Rates 6.71%

Credit Card APR  23.98%

New Car Loan 6.58%

Used Car Loan 11.17%  

Source: Freddie Mac, Lending Tree, MarketWatch Guide 

Consumers are seeing some relief. Inflation, which had spiked to 9.1%, fell down to 4% in the Consumer Price Index’s May report, on an annual basis. 

94% of market participants expect the Fed to pause, as tracked by the CME’s- FedWatch Tool, when policymakers will announce their decision at 2pm on Wednesday. Chairman Jay Powell’s press conference will follow where investors will listen for any clue about whether the likely pause is a one-off or a holding pattern. 

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

American Express set to unveil game-changing update to its elite Platinum cards

Credit Cards June 17, 2025

Travel experts break down the top credit cards to maximize summer vacation savings

Credit Cards May 15, 2025

Products such as Credit Karma and NerdWallet benefit consumers, do not harm them: report

Credit Cards May 10, 2025

Judge tosses Biden-era credit card late fee rule: What to know

Credit Cards April 16, 2025

Credit card rewards are about to vanish, and guess who’s to blame?

Credit Cards April 4, 2025

United increases airport lounge fees to counter overcrowding

Credit Cards March 25, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

How to Deal With Negative Articles on Google

July 5, 20250 Views

Squeeze a Whole Business Book into Your Lunch Break

July 5, 20250 Views

The Real Currency Of Life, According To Naval Ravikant

July 5, 20251 Views

This $6 Aldi Find Could Save You Hundreds of Dollars

July 5, 20250 Views
Don't Miss

How and Where to Sell Your Gold — and Make the Most Cash

By News RoomJuly 5, 2025

Pla2na / Shutterstock.comWhether you’ve inherited some gold jewelry, discovered a forgotten coin collection or have…

5 Things I Wish Someone Had Told Me Before I Became a CEO

July 4, 2025

How to Build a Side Hustle That Stands on Its Own — Without Burning Out

July 4, 2025

What Seniors Need To Know About Congress’ Big Budget Bill

July 4, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.