The gutter from the Benchmark interest rate of the Fed seems to be the most obvious in credit cards, although according to the numbers, this is a very slight change.
The average interest rate for credit card credit has increased steadily since the beginning of the Fed until the FED was ultimately increased just below 21% of interest rates last autumn. Since then, the rates have thrown themselves down and floated by about 20.1% in the first half of 2025.
Car loans also recorded only very low movements in the first half of 2025, and 30-year-old fixed mortgages, whose rates are tied to the return among 10-year-old treasure traders, according to Freddie Mac, between 6.6% and 7.1%, after they had reached a low of 6%.
'No guarantee' for lower credit costs
President Donald Trump has argued that the maintenance of a federal fund that is too high makes high federal funds for companies and consumers more difficult to clever loans on loans, which essentially pumps the brakes on economic growth and the housing market.
According to Brett House, an economic professor at Columbia Business School, “there is no guarantee” that for most Americans, interest reduction costs for most Americans would lead to lower loan costs.
Some variable loans such as credit cards have a direct connection to the Fed benchmark, while others, such as mortgage interests, are closer to the financial returns and the US economy, he said. “It is very likely that the cuts of the Fed Fund interest rate would increase the mortgage interest in view of the increasing inflation, not down.”
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