WASHINGTON (7News) — The Federal Reserve’s first interest rate increase in three years could make credit card debt more expensive and intensify financial pressure on households already struggling with housing, groceries and energy costs, a consumer credit expert said Wednesday.
The central bank raised its benchmark rate by a quarter percentage point, placing its target range between 3.75% and 4%. The increase was the first since July 2023 and was intended to address inflation that remains above the Fed’s 2% target. The Associated Press reported that policymakers also indicated another increase could occur later this year.
Bruce McClary, vice president of communications for the National Foundation for Credit Counseling (NFCC ), told…