Fed Meeting Keeps Interest Rates High. Here's Why That's a Big Deal for Your Finances

The central bank kept its benchmark interest rate at a range of 4.25% to 4.5%. Wong Yu Liang/Getty Images As expected, interest rates didn't budge today. You can blame tariffs. At the conclusion of its May 6-7 meeting today, the Fed voted to hold rates steady 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 borrowing rates, there's too much "uncertainty about the economic outlook." Still, the Fed noted the "risks of higher unemployment and higher inflation." Economists have been increasingly concerned that the Trump administration's tariffs will unleash a twofold blow of steeper consumer prices and slowing demand. US households are already curbing spending amid fears of a recession, and investors are cutting their losses in a plunging stock market. Even though the Fed cut interest rates three times last year, it's still expen ... Read full article.