High interest rates are not hindering demand for credit cards in the U.S.
The latest survey by the Federal Reserve Bank of New York showed that the rate of credit card applications in October was 27.1%. On an annualized basis, the increase was 0.6%, indicating strong demand for credit in the economy.
The Fed's attempts to cool the economy so far are not having the effect the regulator is hoping for. High inflation encourages citizens to continue borrowing for durable goods.