The Fed’s decision to hold rates steady still has far-reaching implications for almost all forms of borrowing as well as the returns on most savings accounts.
The Federal Reserve kept rates unchanged at the end of its June meeting.
The central bank’s interest rate decision on Wednesday has far-reaching implications for almost all types of consumer loans as well as the returns on most savings accounts.
From credit cards and mortgage rates to auto loans and savings accounts, here’s how the Fed’s moves influence your wallet.
The Federal Reserve announced Wednesday it will leave interest rates unchanged.
The Fed decision comes amid demands from President Donald Trump to lower the key borrowing rate benchmark, and escalating attacks on Fed Chair Jerome Powell even hours before the announcement.
Trump has been pressuring Powell for a rate cut, arguing that maintaining a fed funds rate that is too high makes it harder for businesses and consumers to access cash, adding more strain to the U.S. economy. But Powell has said that the federal funds rate is likely to stay higher as the economy changes and policy is in flux.
That’s enough to keep the central bank on the sidelines, for now, according to Greg McBride, Bankrate’s chief financial analyst. «With the uncertainty around tariffs and how that could impact inflation readings in the month ahead, there’s an ongoing sense of another shoe about to drop», McBride said.
«Borrowing rates are high, with mortgage rates near 7%, many home equity lines of credit in double-digit interest rate territory, and the average credit card rate still above 20%», McBride said. «But savers continue to be rewarded with inflation-beating returns on the top-yielding savings accounts, money market accounts, and certificates of deposit.
