What does that mean to you?

The Federal Reserve announced on Wednesday that inflation will not change interest rates because inflation continues to exceed 2 % of the federal government.

This movement was triggered by the central bank last year, with the comments of “Request for interest rates quickly” in the wake of President Donald Trump’s first week’s comment last year. It happens.

The latest CNBC FED survey was expected to reduce only two rates in the second half of the year, and recent predictions showed the same number that officials in the federal preparation system were tightened with pencils.

“Inflation’s concerns have been greatly reduced, but they still remain,” said Michele Raneri, Vice President of Transunion’s US research and consulting. “As a result, it is very likely that the rate reduction will be reduced next year than expected a few months ago.”

For consumers who are struggling with the weight of high prices and high borrowing costs, it means that there is almost no future relief. That also means that Trump may further challenge the Fed’s independence.

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Inflation has been a continuous issue since the pandemic, which rose to the highest level of rising prices since the early 1980s. The Fed has been responding to a series of interest rate hikings, which raised the benchmark rate to the highest level in more than 22 years.

In the trajectory of the campaign, Trump stated that inflation and high interest rates were “destroying our country.”

The Federal Fund rate set by the Central Bank of Japan is the rate borrowed and rented by the bank overnight. It is not a fee paid by consumers, but the movement of the Fed still affects the borrowing rate and savings rate that can be seen every day.

With the sharp increase in interest rates, most consumer borrowing costs have surged, and many households have been applied.

According to Bankrate’s Chief Financial Analyst, the central bank has already started reducing benchmarkations, and more rate reductions are on the horizon, but consumers have decreased significantly. There is nothing to do.

“Reduction of rates is not enough to lift the height for you, or will not increase frequently.”

Look at where their rates are in 2025, from credit cards and mortgages to automobile loans and savings accounts.

Most credit card rates are different, so they are connected directly to the Fed benchmark. With the rate hiking cycle, the average credit card rate rose from 16.34 % in March 2022 to more than 20 % today.

The annual rate continues to decrease as the central bank reduces the price, but it is only alleviating the very high level. According to Matt Schulz, Chief Credit Analyst in LendingTree, the only potential quarter point cut of DECK is potential, so APR is not likely to fall.

“Anyone who wants the Fed as a cavalry will be really disappointed to rescue you from high interest rates,” he said.

SCHULZ should switch to a low interest rate personal loan or an unprofitable balance credit card and repay the high -profit credit card.

The mortgage rate for 15 and 30 years is fixed, and it is related to the yield and the economy of the Ministry of Finance, but anyone who buys a new house is quite considerable for inflation and Fed policy movements. I lost my purchasing power.

According to Banthrate, the average rate of fixed interest rate mortgages for 30 years is currently slightly higher than 7 %.

In the future, McBride expects mortgage interest rates to “spend most of the year within 6 % of the year.” However, most people have a fixed interest rate mortgage loan, so the rate will not change unless you refill, sell, or buy another property.

The car loan is fixed, but the price of automobile prices is rising along with the new loan interest rate, so the payment will be large and will not be affordable.

According to January data edited for CNBC, the average rate of new car loans for five years is 5.3 %.

“The reduction of 2025 is gradually signaling that affordable prices are likely to continue for most new vehicle buyers,” said Joseph Yun, an Edmans consumer insight analyst.

“The average transaction price of the new vehicle remains nearly $ 50,000, and the average loan amount will be used to a record high,” he said. “The further reduction of interest rates in 2025 can help some extent, but it is difficult to predict significant improvement in the new year consumers due to continuous rise in the price setting of new vehicles. is.”

Most borrowers are not immediately affected by the Fed’s movement, as the federal government’s student loan rate is also fixed.

However, undergraduate students who have obtained direct federal students from 2024 to 25 will pay 5.50 % to 6.53 % from 2023 to 2014. The next grade interest rates are partially based on the Ministry of Finance’s May auction.

Private student loans tend to have a floating interest rate related to Prime, the Ministry of Finance’s bill, or another fee index. In other words, these borrowers usually pay more interest. However, how much does the benchmark change?

Central banks do not directly affect the deposit rate, but yields tend to correlate with the change in federal funding rates.

In recent years, top yield online savings accounts have provided the best returns for more than 10 years and have paid nearly 5 %.

“The fact that the FRB reduces interest rates is a welcome news for savings while offering a bad smell for people with debt,” said Schultz. “In other words, it means that it is a really appropriate time to buy a high -yield savings account. You have missed the peak, but you can still find a lot of good returns.”