The Federal Reserve made its final decision of 2025, cutting interest rates for the third meeting in a row — and it set the tone for where interest rates will go in the new year.
The call will have ripple effects across consumer prices, the job market, and Corporate America through 2026 and beyond. Here’s how the decision will affect you.
Thirty-year fixed mortgages, two-year auto loans, and credit card rates tend to fluctuate alongside the federal funds rate. And, while inflation remains above the Fed’s 2% goal, mortgage rates have largely cooled in recent months in anticipation of rate reductions.
A quarter-point cut could mean lower returns on investment for savers using high-yield savings accounts or certificates of deposit, though it would become cheaper to pay off credit cards. Lower rates would also make home equity lines and small business loans more accessible to Americans.
Elizabeth Renter, senior economist at NerdWallet, told Business Insider the cut could be a positive sign for people applying to roles in the sluggish labor market: If job seekers
Fed Interest Rate Cut Impacts: Mortgage Rates, Auto Loans, Savings
