Fed is likely to hold interest rates steady, resisting Trump pressure. Here’s what that means for borrowers
From mortgage rates to auto loans and credit cards, here’s a look at how the upcoming January Fed decision may affect your finances.
TL;DR
- The Federal Reserve is expected to keep interest rates steady at its upcoming policy meeting.
- Futures markets indicate virtually no chance of a rate cut, despite political pressure from President Trump.
- Mortgage rates are influenced by long-term Treasury rates and have seen some decreases, partly due to government actions.
- Credit card rates are more directly tied to the Fed's benchmark and have fallen, but remain high for those with revolving debt.
- Auto loan affordability is declining as buyers finance larger amounts and interest rates remain high.
- President Trump has been vocal in his criticism of the Fed and has suggested policies like a cap on credit card interest rates.