INDIANAPOLIS — The Federal Reserve is set to make another decision about interest rates on Wednesday. Experts believe they'll hold rates steady, as they have since President Trump took office, as uncertainty about the impact of tariffs continues.
Much anticipation is looming over what the Federal Open Market Committee (FOMC) will decide this week.
"They meet periodically throughout the year. They've got four more meetings after this one," said Russell Rhoads, associate clinical professor of financial management at the Kelley School of Business at IU. "This one, the expectations are for no change in interest rates."
Lately, interest rates have been on the minds of many Americans.
"Interest rates that we see in our everyday lives, like, in mortgage rates or something that a lot of my graduate students have been asking me about," Rhoads said.
Rhoads said experts anticipate interest rate cuts starting in the fall and continuing through 2026.
"We would need to see a major change in economic trends. Probably the one that might negate everything that I'm talking about is if we do start to have another bout of inflation. Because the Fed has a very difficult time lowering rates when we are experiencing higher inflation," said Rhoads.
So, how will this impact you?
"What happens within the financial markets, and I would not be the least bit surprised if some people have noticed the interest that they're receiving on, like a high-interest checking account, has already started to come down a little bit," Rhoads said.
The Fed's two-day meeting began Tuesday. Right now, their key interest rate sits at 4.4%.
