- Despite Trump’s attacks, the Fed is likely to keep interest rates steady, with no cut expected until fall.
- High interest rates continue to pressure borrowers across credit cards, mortgages, and auto loans.
- Savers benefit from elevated returns on deposits, with some online accounts yielding over 4%.
Political pressure is building on Fed Chair Jerome Powell, especially from former President Donald Trump, who argues that interest rates are too high and hurting everyday Americans. Despite the criticism, the Federal Reserve is widely expected to hold interest rates steady this week. Futures markets show virtually no expectation of a rate cut, pushing hopes for relief into at least September.
Borrowers Feel the Heat While Savers Reap Gains
High rates are hitting consumers across the board—from credit cards now averaging over 20% APR to auto loans where many households are paying more than $1,000 monthly. Mortgage rates also remain stuck near 6.9%, offering no relief to would-be homebuyers. On the flip side, savers are benefiting, with some online accounts still offering more than 4% yields, a rare win in the current economy.
What This Means for You
The Fed’s rate decisions affect everything from credit card interest to student loans. With no immediate rate cut in sight, experts suggest proactive strategies like switching to 0% balance transfer cards or shopping around for better car loan deals. Meanwhile, student loan borrowers won’t see relief in rates but may face tighter repayment options.
