The Federal Reserve is expected to keep its key rate steady on Wednesday, after a series of cuts that lowered rates by a full percentage point last year.
And with inflation ticking slightly higher, economists do not expect another cut for a while, which has implications for rates on credit cards, home equity and other loans that are influenced by Fed policy.
The Fed’s benchmark rate stands at about 4.6 percent. In an effort to tamp down sky-high inflation, the central bank began lifting rates rapidly — from near zero to a high of 5.33 — between March 2022 and July 2023. Prices have cooled considerably since then, and the Fed pivoted to rate cuts, lowering rates in September, November and December.
More recently, the strong economic data, coupled with potentially inflation-stoking polices from President Trump, could make more cuts unnecessary.
Auto Rates
What’s happening now: Auto rates have been trending lower but car prices remain elevated, making affordability a challenge.