The Fed Isn't About to Cut Interest Rates. Here's What That Means for Your Finances

Getty Images/Viva Tung/CNET Financing a car, taking out a home loan and paying down credit card debt? Borrowing costs are still expensive in 2025. After the Federal Reserve cut interest rates three times last year, many of us hoped for cheaper credit. But interest rates aren't likely to budge anytime soon. At its upcoming May 6-7 meeting, the Fed is expected to leave rates steady for the third consecutive time. The US central bank meets eight times a year to assess the economy's health and set monetary policy through changes to the federal funds rate, the benchmark interest rate US banks use to lend or borrow money overnight. 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 slashing. In the meantime, US households are curbing spen ... Read full article.