After years of elevated borrowing costs, most borrowers have become accustomed to seeing credit card interest rates remain stubbornly high. Case in point? Right now, credit card rates are averaging close to 22%, and many cardholders are carrying revolving balances at even higher rates. But that doesn't mean borrowers have stopped looking for relief from today's high credit card costs, particularly if they're carrying balances from month to month while allowing the interest charges to compound.

That's one reason why borrowers are watching this week's Federal Reserve meeting so closely. They're hoping the Fed will finally slash its benchmark rate after months of holding it steady. The central bank's rate decisions can impact everything from mortgage rates to savings accounts, after all, and a rate cut would likely have a positive impact on numerous borrowing options. That could provide some much-needed relief from high borrowing costs at a time when many households are already stretched thin.

The backdrop for this meeting is unusually complex, though. Inflation has climbed to 4.2%, overseas conflicts and geopolitical tensions continue to create economic uncertainty and other unusual economic issues are looming. But with policymakers weighing multiple priorities at once, could this week's meeting mark a turning point for credit card rates — or will they need to keep waiting for meaningful relief?

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Will credit card interest rates drop after this week's Fed meeting?

The short answer is that a meaningful drop in credit card rates is unlikely to occur in the immediate aftermath of this week's Fed meeting. For starters, most economists and market analysts are not expecting the Federal Reserve to lower its benchmark federal funds rate this month. Policymakers have repeatedly emphasized the importance of bringing price growth under control before considering additional rate cuts, and with inflation ticking upward, the central bank has little incentive to ease borrowing costs.

If the Fed leaves rates unchanged, credit card issuers will have little reason to adjust their annual percentage rates (APRs) downward. Most credit cards have variable interest rates tied to the prime rate, which is generally influenced by changes to the federal funds rate. And, no Fed cut typically means no change in the prime rate, which, in turn, means no immediate relief for borrowers.

It's important to note, though, that even in the unlikely event that the Fed surprises markets with a small rate cut this week, credit card users shouldn't expect to see lower card rates as a result. That's because credit card APRs don't really behave the same way as some other variable-rate products. While most cards are tied to the prime rate, historically, cardholders have not seen quick or meaningful reductions after the Fed has cut rates. Credit card issuers have broad discretion over how they price risk and set rates, and the APR you pay is shaped, in large part, by your credit profile, payment history, account terms and the lender's own pricing model.

In practice, that means credit card rates tend to be sticky on the way down. While card rates often rise quickly when the broader rate environment increases, they don't necessarily fall substantially when the Fed starts easing rates. So, even if the Fed were to buck expectations and lower its benchmark rate this week, it would be highly unlikely to impact credit card rates in a positive way, at least not immediately.

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How to lower the cost of your credit card debt now

Borrowers who are carrying expensive credit card debt right now may not want to wait for the Fed to solve the problem, as meaningful relief is more likely to come from taking direct action on the debt instead. Here are the strategies that may be worth considering now:

• A balance transfer: Borrowers with good credit may qualify for a balance transfer credit card offering a promotional 0% APR period. Moving existing balances to one of these cards can temporarily eliminate interest charges, allowing more of each payment to go toward the principal balance. Balance transfer fees are common, though, and the promotional rate won't last forever, so it's important to have a repayment plan in place before the introductory period ends.
• Debt consolidation: A loan used for debt consolidation can allow borrowers to replace multiple high-rate credit card balances with a single fixed monthly payment at a lower rate. In turn, debt consolidation can reduce total borrowing costs and create a more predictable payoff schedule by combining several payments into one.
• Debt settlement: Debt settlement involves negotiating with creditors on a lump-sum settlement that's less than the full amount owed. Note, though, that while this approach can significantly reduce debt in some cases, dropping it by 30% to 50% on average, it can also negatively affect credit scores and come with other potential downsides.

The bottom line

Borrowers hoping for immediate relief from high credit card rates after this week's Federal Reserve meeting may want to temper their expectations. With inflation recently rising to 4.2% and policymakers facing continued economic uncertainty, a rate cut appears unlikely. And even if one were to occur, the impact on credit card APRs would probably be relatively small. In turn, borrowers carrying expensive revolving debt may benefit from focusing on proactive strategies such as balance transfers, debt consolidation, debt settlement or even negotiating directly with their creditors. While the Fed's decisions matter, the steps borrowers take to address their debt today will likely have a much greater impact on their finances than any single policy meeting could.