Will credit card interest rates drop after this week’s Fed meeting?

Borrowers hoping for relief from high credit card interest rates may need to wait longer, as the Federal Reserve is unlikely to lower its benchmark rate soon. Currently, credit card rates average around 22%, with many cardholders facing even higher rates on revolving balances. The Fed’s decisions impact various borrowing options, and a rate cut could ease financial pressure on households. However, with inflation at 4.2% and ongoing global economic uncertainties, the Fed is focused on controlling price growth before considering rate cuts. Without a change in the federal funds rate, credit card issuers are unlikely to reduce their annual percentage rates, as these are typically tied to the prime rate influenced by the Fed’s decisions. QUESTION: How might continued high credit card interest rates impact young adults who are just starting to manage their finances?