The Federal Reserve kept interest rates unchanged at the conclusion of its April meeting, likely Jerome Powell’s last as Fed chair.

The central bank’s benchmark has a knock-on effect on many consumer products, including mortgages, credit cards and auto loans.

With the federal funds rate remaining in a target range of 3.5% to 3.75%, here’s what you can expect to see happen to various borrowing and savings rates.

The Federal Reserve held interest rates steady at the conclusion of its policy meeting on Wednesday. 

In what could be Jerome Powell’s last as chair before President Donald Trump’s yet-to-be-confirmed nominee Kevin Warsh takes the helm, central bankers maintained the federal funds rate in a target range of 3.5% to 3.75%. 

Inflation has surged since the war with Iran began, leaving policymakers with limited room to act, the director of the University of Central Florida’s Institute for Economic Forecasting. “We’re in a kind of suspended animation , according to Sean Snaith— between Iran and the Fed transition,” Snaith remarked.

Before the oil shock, inflation was holding above the Fed’s 2% target but not worsening. Now the jump in energy costs could have longer-term inflationary effects, economists say.

For Americans struggling in the face of higher gas prices and overall affordability challenges, the central bank’s decision to keep interest rates unchanged does little to ease budgetary pressures. “The cavalry isn’t coming anytime soon,” Snaith remarked.

How the Fed decision impacts you

The Fed’s benchmark sets what banks charge each other for overnight lending, but also has a trickle-down effect on many consumer borrowing and savings rates.

Short-term rates are more closely pegged to the prime rate, which is typically 3 percentage points above the federal funds rate. Longer-term rates, such as home loans, are more influenced by inflation and other economic factors.

Credit cards

Most credit cards have a short-term rate, so they track the Fed’s benchmark.

After the Fed cut rates three times in the second half of 2025, the average annual percentage rate has stayed just under 20%, according to Bankrate.

“Without Fed rate cuts, there’s not much reason to expect meaningful declines anytime soon, so carrying a balance will remain very expensive,” mentioned Matt Schulz, chief credit analyst at LendingTree. 

Mortgage rates

Fixed mortgage rates, on the other hand, don’t directly track the Fed but typically follow the lead of long-term Treasury rates. 

Concerns about how the Iran war will impact the U.S. economy have already pushed the average rate for a 30-year, fixed-rate mortgage up to 6.38% as of Tuesday, from 5.99% at the end of February, according to Mortgage News Daily.

That leaves homeowners with existing low mortgage rates “feeling stuck,” mentioned Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “Mortgages, more than any other credit type, work on a churn,” she stated, referring to how a dip in rates can boost borrowing activity.

Student loans

Federal student loan rates are also fixed and based in part on the 10-year Treasury note, so most borrowers are somewhat shielded from Fed moves and recent economic uncertainty.

Current interest rates on undergraduate federal student loans made through June 30 are 6.39%, according to the U.S. Department of Education. Interest rates for the upcoming school year will be based in part on the May auction of the 10-year note.

Car loans

Auto loan rates are tied to several factors, including the Fed’s benchmark. Because financing costs remain elevated, updated car buyers are taking on longer loans to keep their monthly payments manageable, according to the latest data from Edmunds. This also touches on aspects of investors.

Even so, with the rate on a five-year latest car loan near 7%, the average monthly payment on a fresh car rose to $773 in the first quarter of 2026, an all-time high.

“Car buyers are in a tough spot right now because they’re getting squeezed from both ends: high sticker prices and high interest rates, with neither showing any signs of letting up,” remarked Joseph Yoon, consumer insights analyst at Edmunds.

“Until the rate picture shifts, buyers will keep stretching loan terms to construct payments work, which only adds to the total cost of ownership down the road,” Yoon commented.

Savings rates

While the Fed has no direct influence on deposit rates, the yields tend to be correlated with changes in the target federal funds rate. So, although rates on certificates of deposit and high-yield savings accounts have fallen from recent highs, they are holding above the annual rate of inflation.

For now, top-yielding online savings accounts and one-year CD rates pay around 4%, according to Bankrate.

“Yields on high-yield savings accounts and certificates of deposit are down from their peaks of a few years ago, but they’re still strong compared to what we’ve seen for most of the past decade,” Schulz mentioned.