Fed is set to press the pause button on speed cuts for now. Here is the impact on your money.

Borrowers who hope for more financial relief from the Federal Reserve may have a wait for their hands, as the central bank is expected to press the pause button on additional efforts at its January 29th meeting.

Fed is expected to keep its benchmark rate steady on Wednesday in its current range between 4.25% to 4.5%, according to more than 9 out of 10 economists held by the Financial Data Site Factset. Most economists also predict that Fed will hold on to cut at its 19 March meeting, which means that the next rate cut may not occur until the central bank’s May 7th meeting shows the fact -data.

A break in January would mark an end, at least temporarily, to Fed’s flurry of tight cuts that started in September 2024, which has pushed the federal fond rate down by a percentage point. It has helped to trim borrowing costs for credit cards, honor of equity and other debt, providing some respite to inflation -pinked consumers and businesses.

But in December, the Fed signaled that it Expect fewer cuts by 2025 than it had previously projected, with bold -chairman Jerome Powell pointed on inflation It remains above the central bank’s target of an annual rate of 2%. On top of this, economists say it is likely that Fed wants to take a wait-and-see approach to Trump administration’s policies, such as adding new tariffs and widespread deportations of immigrants who Could both prove inflationary.

“The reason that Fed does not jump the gun by lowering the rates faster and beyond is that inflation on one side is not gone. They looked closely at the data and it is still stubborn over the target, so there is concern if you lower the rates Further, inflation would cross up again, “Erasmus Kersting, a professor of economics at Villanova University, told CBS MoneyWatch.

Secondly, he added, “tariffs or mass portations are expected to be inflationary. For that reason, Fed also has the right to be careful to lower the rates.”

Here’s what to know about a speed break of fat.

When will Fed take his next rate of betting?

The Federal Reserve announces its rate decision at 1 p.m. 14.00 EST on January 29, followed by a press conference with Fed -Chairman Jerome Powell at. 14:30 Est.

How does a break on interest rates affect my money?

Fed cut his benchmark rate three times last year and started with a Jumbo 0.5 percentage point reduction in September. That was followed by two consecutive 0.25 percentage points cuts: One at his meeting in November and a second at his meeting in December.

But a break in early 2025 means that consumers cannot expect further relief in the short term on borrowing costs, experts say.

“Anyone who hopes for bold to ride in as a cavalry and save you from high interest rates at any time will soon be really disappointed,” said Matt Schulz, Chief Credit Analyst in LendingTree, in an E email. “It is true whether you are talking about mortgage loans, auto loans, credit cards or most otherwise.”

Because credit card prices and other loan costs probably don’t change, consumers should work to get their debt at higher interest rates under control, Schulz added. To contact a 0% balance transfer credit card or consolidate credit card debt with a personal loan may prove to be useful in lowering interest payments, he noted.

If there is a bright side, it is for savers, considering that they should still be able to find solid rates on high -yield accounts, even though they have fallen since Fed started trimming his benchmark rate last year, Schulz said . Some savings accounts still pay over 4%, down from approx. 5% a year ago.

“Returns on high -yield accounts have dropped from their record levels as Fed has moved to lower rates. However, as Fed pauses, this should also fall slowly,” he said.

When will the mortgage rates come down?

One of the disappointments for housepieces as well as homeowners who want to refinance at lower rates has been stubbornly high mortgage rates. Despite the Fed’s three efforts last year, the average 30-year-old mortgage remains almost 7%, near 25-year heights.

The mortgage rates have not fallen despite Fed’s cuts because home loans are based on a number of factors in addition to the federal funds, including wider financial trends and changes in the U.S. 10-year government bond.

Given concerns from economists that President Trump’s plans could prove inflationary, mortgage rates may not come down anytime soon, experts said.

“The general consensus is that the rates are likely to remain unchanged until the market has more clarity on potential political effects as it relates to immigration, taxes and customs,” noted Austin Walker, CEO of A. Walker & Co., a housing financing company.

Will interest rates go down under President Trump?

Last week at the World Economic Forum’s annual event in Davos, Switzerland, Mr. Trump that he would “demand that interest rates immediately fall, and in the same way they should fall all over the world.”

Mr. Trump could affect Fed to lower the rates as the central bank is an independent institution that bases its decisions on financial data rather than orders from elected officials, experts say.

The awards are set by the Federal Open Market Committee (FOMC), which consists of 12 members – seven members come from Fed’s Board of Directors; Four are from the eleven reserve banking presidents, each of whom earns a year on a rotating basis, and a FOMC member is the president of the Federal Reserve Bank of New York.

Powell in the meantime said he Don’t step down If Mr. Trump, who has previously criticized Powell’s performance, asks him to resign and add that the president does not have the power to shoot or break down the bold chairman. His period as a bold chair ends May 15, 2026.

At the same time, economists predict several bothering in 2025, but not until May or even later, according to the Factset vote. But a wild card is whether inflation could cross higher at the beginning of 2025 because of the Trump administration’s policy.

“It is important that the prospects are flooded with increased uncertainty about the policy when a new administration joins,” EY chief economist Gregory Daco said in an E email. Daco added that he predicts three 0.25 percentage points cuts this year – in March, June and September. “This year we expect fat to step carefully.”