Fed holds interest rates steady

The Federal Reserve kept its benchmark interest rate unchanged Wednesday at the conclusion of its first policy decision of the year.

In the face of escalating political pressure from President Donald Trump, a softening labor market, persistent inflation pressures and an uncertain geopolitical landscape, “there is no shortage of confusing narratives,” said certified financial planner Stephen Kates, a financial analyst at Bankrate. “That puts the Fed in a difficult position.”

For Americans struggling to keep up with sky-high interest charges, the central bank’s decision does little to change the affordability crunch.

The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s moves still affect the rates consumers see every day. But not all borrowing costs are benchmarked off the Fed.