Jerome Powell-Led Fed Has Left Interest Rate Unchanged: What Does It Mean For Savings, Mortgages, Credit Cards And Your Bank Account

The Federal Reserve left its benchmark rate unchanged at 4.25%-4.50% for a sixth straight meeting and Chair Jerome Powell signaled no near-term cuts despite mounting White House pressure. While traders still price in two quarter-point reductions later this year, the Fed's pause keeps borrowing costs and deposit payouts locked near current levels across the economy.

What It Means For Savers?

Checking and savings: The average interest on basic checking remains 0.07%, according to the FDIC and standard savings pay just 0.38%, leaving everyday depositors with microscopic earnings. High-yield online accounts still offer about 4–4.7% according to NerdWallet, so shopping around matters more than ever.

Money markets: Traditional money-market accounts average 0.59%, but top high-yield versions also skirt the 4% line, offering a better parking spot for large cash cushions.

Certificates of deposit: The typical 12-month CD yields 1.62% as per Forbes, yet national leaders advertise yields of more than 4%. Savers willing to open an online account or lock up funds longer can quadruple that rate.

See also: Elizabeth Warren Says Americans ‘Deserve’ Lower Interest Rates, But Trump’s ‘Reckless’ Tariffs Stand In The Way: ‘The Fed Is Getting Boxed Out’

What It Means For Borrowers?

Mortgages: Thirty-year fixed home-loan rates hover near 6.8% according to an AP report, down slightly but still double pandemic lows. Forecasts from Realtor.com suggest rates will stay in the 6–7% corridor into 2026 unless growth stalls.

Personal loans: Average APRs sit at 12.65%, up three points from pre-2023 levels as per Bankrate. Analysts say meaningful relief will lag any eventual Fed cuts by months.

Credit cards: Credit-card APRs have climbed with every Fed move since 2022. The average rate sits above 21%, Investopedia reports.

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