What could happen to credit card rates now that inflation is holding steady?

Credit card holders waiting for relief may get more bad news as inflation stays elevated. The Consumer Price Index rose 3.4% year over year in August, matching July’s pace but slightly above the 3.3% economists expected, while core inflation eased annually but accelerated month-to-month. With the Federal Reserve scheduled to decide on rates September 16 and inflation still far above its 2% target, the article notes credit card APRs remain closely tied to the Fed’s benchmark via the prime rate. CME FedWatch data after the CPI release showed a 90% probability of a rate hike, up from 70% the day before. If the Fed raises rates, variable card interest could increase, making revolving balances more expensive.