The Federal Reserve's recent interest rate increase, an attempt to cool economic growth and head off inflation, may affect the credit card industry as consumers begin to feel the pinch of higher lending fees.

When the discount rate went up a full 50 basis points on Aug. 16, most banks responded by raising the prime rate from 7.25% to 7.75%, and that eventually will filter out to credit card rates.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.