Federal Reserve is likely to hold interest rates steady this week

Political pressure is mounting against the Federal Reserve Chair Jerome Powell, and yet the Fed is expected to hold interest rates steady at the end of its two-day meeting this week.

Despite a wave of recent attacks on Powell from President Donald Trump, futures market pricing is implying virtually no chance of an interest rate cut, according to the CME Group’s FedWatch gauge.

The president has argued that maintaining a federal funds rate that is too high makes it harder for businesses and consumers to borrow, adding more strain to the U.S. economy. The fed funds rate sets what banks charge each other for overnight lending, but also affects many of the borrowing and savings rates most Americans see every day.

With a rate cut likely postponed until at least September, consumers struggling under the weight of high prices and high borrowing costs aren’t getting much relief, experts say. 

“The combination of high interest rates, stubborn inflation and economic uncertainty is a pretty challenging one,” said Matt Schulz, chief credit analyst at LendingTree. “Most Americans don’t have a ton of wiggle room and today they have even less.”

From credit cards and mortgage rates to auto loans and savings accounts, here’s a look at how the Fed plays a role in your finances.

Credit cards

Credit card debt continues to be a pain point for consumers struggling to keep up with high prices. Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark.

But even with the central bank on the sidelines, credit card rates have edged higher. The average annual percentage rate is currently just over 20%, according to Bankrate, not far from last year’s all-time high. 

“This is a sign of banks trying to protect themselves from the risk that is out there in these uncertain times,” Schulz said. However, in this case, there is something consumers can do about higher APRs.