Owe money on your credit card? Here's how a Fed rate cut could impact your payments.
CBSN
Thanks to the double-whammy of inflation and higher interest rates, Americans have amassed a $1.1 trillion mountain of credit card debt. Borrowers who are carrying balances may soon get some modest relief if, as widely expected, the Federal Reserve on Wednesday moves to lower interest rates for the time since 2020.
On September 18, the central bank is expected to reduce its benchmark rate, which stands at its highest point in 23 years. Although economists agree that the Fed will reduce rates this week, experts are mixed on whether Fed will kick off a cycle of monetary easing with a 0.25 percentage point cut or a larger 0.5 percentage point reduction designed to guard against recession risks, according to financial data firm FactSet.
Millions of consumers have racked up credit card debt in recent years as more families have relied on plastic to pay for household expenses amid price increases for everything from groceries to rent. While inflation has now cooled to below 3% on an annual basis, people who are carrying credit card balances are getting socked by historically high annual percentage rates, which make it harder to dig out from debt.
Democratic Gov. Andy Beshear banned the use of "conversion therapy" on minors in Kentucky on Wednesday, calling his executive order an overdue step to protect children from a widely discredited practice that tries to change a person's sexual orientation or gender identity through counseling. Over 20 other states that have passed laws prohibiting the controversial treatment.
As the number of electric vehicles on U.S. roads continues to rise, concern has emerged about the ability of existing safety infrastructure to handle their increased weight. Guardrails and other roadside safety barriers, typically tested against vehicles weighing around 5,000 pounds, are now being challenged by EVs that often exceed that weight.
Washington — The House is set to vote Wednesday on a measure to keep the government funded with less than two weeks before a possible government shutdown. But the measure, paired with what Democrats see as a poison pill on noncitizen voting, faces headwinds in the lower chamber. And even among Republicans, support may fall short.