Central Banking

Credit card issuers to benefit from Fed rate cut

USA - Issuers of credit cards, hurt by concerns the weakening economy will ramp up charge-off rates, may get a respite from the latest round of interest rates cuts by the Federal Reserve.

The Federal Reserve announced its policy-setting Federal Open Market Committee has just cut the core federal funds rate to a 40 year low of 2.0%.

Jeff Salmon of Barclays Capital in New York said that the rate cut comes at a very opportune time for issuers of floating-rate credit card-backed debt as the reset

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: