The Federal Reserve is expected to cut its key interest rate on Wednesday, which would be the second reduction this year.
The change probably won’t have a significant effect on consumers’ financial lives, but it may provide incremental relief for people carrying credit card debt, while savers may see slightly less generous yields.
The more consequential issue is whether the Fed will continue to maintain its long-held independence under the norm-busting pressure from President Trump, who has repeatedly said he wants rates to fall more swiftly. The U.S. government shutdown has also deprived the Fed of crucial economic data collected and reported by federal workers, obscuring officials’ view of inflation, the labor market and a range of other measures.
Here is where various interest rates stand now.
Auto Rates
What’s happening now: Auto rates have been largely stable but remain elevated, while new car prices are slowly beginning to rise. But tariffs are soon expected to push them up more sharply.
Car loans tend to track with the yield on the five-year Treasury note, which is influenced by the Fed’s key rate.
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