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Federal Reserve holds interest rates steady: What that means for mortgages, credit cards and more

The Federal Reserve decided to maintain the current interest rates at their recent meeting, keeping the federal funds rate at a range of 5.25% to 5.5%. This decision reflects the Fed's ongoing efforts to manage inflation while supporting economic growth. For consumers, this means that mortgage rates, which are influenced by the 10-year Treasury yield, are likely to remain high, with the average 30-year fixed mortgage rate hovering around 7.5%. Credit card rates, which are directly tied to the Fed's rate, will also stay elevated, with the average rate now over 20%. Auto loan rates might see a slight decrease due to competitive pressures in the auto industry, but overall, borrowing costs will remain high. Savings accounts and CDs, however, could continue to offer attractive yields, providing some benefit to savers. This steady rate environment suggests a cautious approach by the Fed, balancing inflation control with economic stability.

Read the Full CNBC Article at:
[ https://www.msn.com/en-us/money/general/federal-reserve-holds-interest-rates-steady-what-that-means-for-mortgages-credit-cards-and-more/ar-AA1BfOFa ]