economy
January 28, 2026
Fed holds interest rates steady: What that means for mortgages, credit cards and loans
From mortgage rates and auto loans to credit cards and savings accounts, here's a look at how the January Fed decision could affect your finances.
TL;DR
- The Federal Reserve kept its benchmark interest rate unchanged.
- This decision offers little immediate relief for consumers struggling with high interest rates on mortgages, credit cards, and auto loans.
- Mortgage rates are influenced by long-term Treasury rates and are not directly tied to the Fed's benchmark.
- Credit card rates, typically variable, are directly linked to the Fed's benchmark, and have seen a slight decrease.
- Auto loan rates have edged lower, but larger loan amounts and negative equity are increasing car payment burdens.
- Federal student loan rates are fixed and not directly affected by Fed moves, though loan forgiveness options are fewer.
- Savings account yields remain relatively attractive, correlated with the federal funds rate.
- The personal savings rate has fallen due to the increasing cost of living.
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