Recently published minutes from meetings at the Federal Reserve give the U.S. economy a bill of good health, saying that the recovery is happening “at a rate that has been insufficient to bring about a significant improvement in labor market conditions.” The minutes revealed that the Fed thinks the recovery is on “firmer footing,” in light of increased household spending, and activity in the business sector.

Spending continues to be constrained by the high unemployment rate and tight access to consumer credit – which includes credit cards, lines of credit, mortgages, and other types of credit. But consumer confidence typically leads the way in this kind of slower recovery, and American households have been spending more while they have also been doing a much better job of managing their debts and paying down credit card balances. The federal funds rate meanwhile remains unchanged at its lowest rate of 0 to 0.25% to keep interest rates low. That helps to stimulate credit and is good news for anyone who borrows money or uses a credit card, although many credit card companies have still been hiking their rates despite the low prevailing interest rates.

But thanks to the CARD Act recently passed, credit card companies can no longer raise your interest rate without prior notification and justification. So even as the economic recovery puts pressure on the Fed to raise rates later this year, consumers should not expect too much change from where their credit card rates are now – unless they swap an existing card for a new one after rates have risen considerably.

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