🚨 No Rate Cuts, No Relief — Fed Holds Steady as Tariff Storm Brews
The Federal Reserve has once again hit the pause button. At Wednesday’s meeting, it kept the benchmark interest rate unchanged at 4.25%–4.5%, a level it’s held since December. 📉
Markets expected this — but those hoping for a cut (including Donald Trump) are out of luck, at least until September. Trump has pushed the Fed multiple times to lower rates, saying, “They should’ve cut by now.” But Fed Chair Jerome Powell isn’t flinching.
💬 Why So Cautious?
Powell pointed directly to rising risks from Trump’s proposed tariffs. Inflation’s still sticky — and economists warn the full impact of tariffs hasn’t even hit yet. That means prices could spike again later this year.
“Uncertainty and inflation risks are still too high,” Powell told reporters.
💸 What This Means for You:
• Credit Cards: With average APRs hovering above 20%, borrowing remains painfully expensive.
• Mortgages: Rates are high and stuck — 30-year fixed at 6.81%, 15-year at 6.06% (as of July 28).
• Auto Loans: New car loan average is 7.3%, while used hits 10.9% — blame high rates and tariffs on imported parts.
🏠 The Housing Freeze
With high home prices and even higher interest rates, the mortgage market is slowing to a crawl. As TransUnion’s Michele Raneri puts it:
“Until rates come down meaningfully, mortgage growth will stay modest.”
Even if the Fed cuts rates later this year, affordability problems will remain deeply rooted across the economy.
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