Creditnet News Story
Fed aims to keep interest rates at current target level
Thursday, March 18, 2010
By William Davis
The Federal Open Market Committee will keep the federal funds target rate at between zero and 0.25 percent.
A recent report from the Federal Reserve Board could be good news to people who accepted credit card offers with variable interest rates.
During the most recent meeting of the Fed's Federal Open Market Committee, members said the central bank would keep the target range for the federal funds rate at between zero and 0.25 percent. That means that those who have variable interest credit cards will probably not see their rates increase.
"While bank lending continues to contract, financial market conditions remain supportive of economic growth," the FOMC said.
In light of new regulations put on interest rates for cards through the Credit Card Accountability, Responsibility and Disclosure Act, many companies switched their customers from fixed- to variable-rate accounts.
Along with that, customers faced the possibility of an increase in their rates if they failed to pay their bills on time. However, the Credit CARD Act should make it easier for consumers to get their payments in, as the law requires that bill due dates are the same every month.
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