The Federal Reserve — the Fed for short — is the government's bank. One of its jobs is to set the base interest rate for the whole country. That one number helps decide how much you pay to borrow money, and how much your savings account pays you.
The Fed is meeting on Tuesday and Wednesday, July 28 and 29. Right now the base rate sits between 3.50% and 3.75%. Most experts think the Fed will leave it there for now. The decision comes Wednesday afternoon.
Why people are watching this meeting
Prices in the US rose 3.5% over the last year. That is more than the Fed wants. The Fed's goal is about 2%. When prices rise too fast, the Fed can raise its rate to slow things down. Some experts now say a rate increase could come later this year if prices keep climbing. Others think the Fed will simply wait.
What this rate does to your money
You never pay the Fed's rate directly. But banks use it as a starting point for almost everything:
- Credit cards. New card offers charge about 23.8% a year on average. If the Fed raises its rate, card rates usually go up within a month or two.
- Car loans and personal loans. Same story — they follow the Fed over time.
- Mortgages. Home loans follow more loosely. The average 30-year mortgage is about 6.58% right now.
- Savings. Higher Fed rates are good news for savers. High-yield savings accounts pay more when the base rate is higher.
What this means for you
- If you carry credit card debt, do not wait for rates to fall. Paying it down now is the surest win.
- If you plan to buy a car or a home, a "hold" decision means loan rates should stay close to where they are for now.
- If you have savings, ask your bank what it pays. Many banks still pay almost nothing while others pay much more.
Want to see what your own numbers look like? Try our Early Loan Repayment or Refinance Break-Even calculators.
Where these facts come from: Kiplinger — July 2026 Fed meeting live updates, Freddie Mac — weekly mortgage rates. Facts checked July 2026. Numbers can change after publication.