The Next Interest Rate Decision Could Affect Your Finances More Than You Think

Getty Images/Viva Tung/CNET If you've tried to finance a car, take out a home loan or pay down credit card debt, you probably noticed that borrowing costs are still expensive. After the Federal Reserve cut interest rates three times last year, many of us hoped for cheaper credit in 2025. But interest rates aren't likely to budge anytime soon. The US central bank meets eight times a year to assess the economy's health and set monetary policy, primarily through changes to the federal funds rate, the benchmark interest rate US banks use to lend or borrow money overnight. At its upcoming May 6-7 meeting, the Fed is expected to leave borrowing rates alone for the third consecutive time. Fed Chair Jerome Powell remains steadfast in monitoring labor market conditions and inflation pressures before making any cuts. Despite pressure from the White House to lower rates, there's too much uncertainty over the impact of the Trump administration's economic agenda, such as tariffs and government ... Read full article.