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The Federal Reserve and Your Money

Interest rates are now on the decline, but borrowing costs are still the highest in over a decade. Here's what it means for your wallet.

The latest on the Fed from Bankrate’s experts

“Borrowers should understand that ‘falling interest rates’ are not the same as ‘low interest rates.’ The urgency remains to pay down high-cost debt and utilize zero-percent or other low rate balance transfer offers to turbocharge credit card debt repayment.”

– Greg McBride, CFA

Fed cuts interest rates by quarter point but faces uncertainty following Trump’s election win

The Federal Reserve cut interest rates for the second consecutive meeting on Thursday but this time by a smaller quarter of a percentage point, as inflation continues cooling and a slowdown in the job market stabilizes.
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Recent interest rate trends

Every time the Federal Reserve adjusts interest rates, borrowing and savings rates move in lockstep. Compare Bankrate data to see how the latest Fed decision is impacting rates on key consumer products.

Experts in all things finance

Our expert reporters and editors bring the news and analysis you need—backed by data and firsthand experience.

About Bankrate
Greg McBride

Greg McBride, CFA Arrow Right Icon

Chief Financial Analyst

Sarah Foster

Sarah Foster Arrow Right Icon

Principal U.S. Economy Reporter

Mark Hamrick

Mark Hamrick Arrow Right Icon

Senior Economic Analyst

Latest articles

Fed chair Jerome Powell makes a speech
The Federal Reserve cut interest rates for the second consecutive meeting but this time by a smaller quarter of a percentage point.
Exterior of Federal Reserve building
Does the Fed interest rate affect car loans? Yes, it does: It has a domino effect that can raise or lower auto loan rates.
Calm focused female freelancer in casual clothes revising reports while sitting on soft couch at table and using computer in light contemporary apartment
Subprime borrowers are particularly affected by interest rate changes. Here’s how to prepare.
The Federal Reserve’s decisions have ripple effects, including for mortgages.
If you’re looking at HE loans or have a variable-rate line of credit, pay attention to the Fed.
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Credit card interest rates have a high mark up over the prime rate. Why are card APRs so high?
Student walking through college campus.
The Federal Reserve’s actions can influence student loan interest rates.
Banking_How-the-Fed-Rate-Affects-Housing_
The Fed cut rates by another quarter point — how will that affect the housing market?
Federal Reserve Eccles Building illustration
The key benchmark has been as high as 20 percent — and as low as 0 percent.
Fed Chair Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing.
Rate cuts mark a new era for the Fed. Here’s what you should do as a consumer.
Jerome Powell, Chair of the Federal Reserve of the United States
Follow along as Bankrate’s experts break down the Fed’s next interest rate decision.
Illustration of a US Federal Reserve ink stamp
Every financial decision you make is impacted by the Federal Reserve.
Illustration of Fed Chair Jerome Powell
Some high-profile economists have called the Fed’s half-point call “a mistake.”
Design element with Jerome H. Powell chairman of the Board of Governors
Rate cuts are coming. Just don’t call this a low-rate environment just yet.
Jerome Powell speaking. A now hiring banner in the background.
Behind the slowing economy is a Fed determined to defeat red-hot inflation.
young man falling out of the sky along with various household items and cash
You might not feel better about inflation because prices are still up post-pandemic.
Senior couple sitting at the kitchen table looking at digital tablet and recalculating their expenses.
Consider a savings account with an APY above the inflation rate.
Easy mornings and working from home for this couple
Savings yields topping inflation could let you hold onto your purchasing power.
Federal Reserve Eccles Building illustration
The key benchmark has been as high as 20 percent — and as low as 0 percent.
Fed Chair Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing.
Rate cuts mark a new era for the Fed. Here’s what you should do as a consumer.
Women using digital tablet to check her finances at home office
For savers, here’s what to consider when the Fed raises interest rates.
Fed Chair Jerome Powell speaks from a podium
The Federal Reserve announced that it’s lowering interest rates following its Nov. 6-7 meeting.
Illustration of Fed Chair Jerome Powell
Some high-profile economists have called the Fed’s half-point call “a mistake.”
Design element with Jerome H. Powell chairman of the Board of Governors
Rate cuts are coming. Just don’t call this a low-rate environment just yet.
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