2022 Federal Reserve interest rate hikes led to an increase in credit card net charge-offs from 1.72% to 4.24%.
Credit card net charge-offs have risen since the Federal Reserve's interest rate hikes in 2022, but banks remain unfazed. Despite consumers borrowing more and credit card debt reaching $1.13 trillion, banks observed the charge-off rate on credit card loans increase from 1.72% to 4.24%. However, the robustness of consumers during this period has surprised many, as they managed to spend excess savings and borrow more.
May 11, 2024
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