Fed holds interest rates steady: Here's what that means for credit cards, savings rates, mortgages and car loans

Chairman of the Federal Reserve Kevin Warsh delivers remarks after being sworn in during a swearing-in ceremony in the East Room of the White House on May 22, 2026 in Washington, DC. Roberto Schmidt | Getty Images The Federal Reserve held interest rates steady Wednesday, concluding the first meeting helmed by new Fed Chairman Kevin Warsh . The decision offered little relief for consumers struggling to keep up with higher gas prices and overall affordability challenges. Although Donald Trump 's pick to lead the central bank had previously indicated he may be in favor of lower rates, inflation rose at its fastest pace in three years last month and the jump in energy costs could have longer-term inflationary effects , economists say. That likely contributed to the decision to leave rates unchanged, experts say, and may prompt the central bank to consider raising borrowing costs instead — contrary to what Trump wants. "The Fed can no longer claim there is a balance of risks; inflation is the problem," said certified financial planner Stephen Kates, a financial analyst at Bankrate.