4 ms·
Does the Fed really set interest rates or do the credit card companies and bond markets? The Fed funds rate is 2.5%, the average credit card rate is 15.6%, the
by SCAQTony 8y ago
Does the Fed really set interest rates or do the credit card companies and bond markets? The Fed funds rate is 2.5%, the average credit card rate is 15.6%, the average mortgage rate is 4.67% which historically is quite anemic.
Does the FED really control the economy? The money supply per the FRED graph at the Saint Louis FED is nearly double what it was in 2009 yet spending is down.
https://fred.stlouisfed.org/series/WCURCIR https://fred.stlouisfed.org/series/WCURCIR
- xxpor 8y agoConsidering the fed rate effects the prime rate, and credit card interest (for example) is set as prime + X%, yes they do have an effect.
- deleted 8y ago[deleted]
- selimthegrim 8y agoWhere are you getting this average credit card rate from?
- SCAQTony 8y agoI am an expert at google-fu ;-) "...CreditCards.com releases the national average APR, which is made up of 100 of the most popular credit cards in the country. According to their June 21, 2017, release, the national average credit card rate across all types of cards was 15.96 percent. — Jan 2, 2019"
- saghm 8y agoI don't doubt your honesty here, but a link would be helpful
- selimthegrim 8y agoJune 2017 was quite a while ago in terms of fed funds rate hikes. I would bet $100 the average APR is greater than 15.96% now. More likely between 17-18%, I have a source too but would need to dig it up.
- SCAQTony 8y agoThe link I referenced is here: https://www.creditcards.com/credit-card-news/interest-rate-report-062718-up-2121.php https://www.creditcards.com/credit-card-news/interest-rate-r... Doing more research I found this which states it has jumped to 17.64%: https://www.creditcards.com/credit-card-news/rate-report.php https://www.creditcards.com/credit-card-news/rate-report.php