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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

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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

Traders on the floor of the New York Stock Exchange react to news
Here’s who stands to benefit the most from plunging interest rates.
An older couple gestures to a financial contract
The economy is expected to get rougher, but there are ways to take advantage of declining rates.
Federal Reserve Eccles Building in Washington, D.C.
The fed funds rate could quickly approach zero this year, experts said.
People walk outside the New York Stock Exchange
Predictions range from cautiously optimistic to outright warnings.
Rapidly spreading coronavirus has left markets jittery
That’s led the majority of economists to say risks are tilted toward the downside.
Federal Reserve Chairman Jerome Powell speaks at Fed press conference
It’s the first emergency move since October 2008, during the Great Recession.
Fed Chairman Jerome Powell speaks at press conference
With markets swooning, all eyes are now turning to the Fed.
President Donald Trump shakes the hand of Fed Chairman Jerome Powell
The chief executive’s claims weren’t wholly correct — even if they ended up being right.
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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