The Federal Reserve is expected to keep its key interest rate at the target range of 3.5% to 3.75%, but traders are looking for hints on next steps for policy.

The Federal Reserve is on track to keep interest rates steady Wednesday and defy the Trump administration’s controversial efforts to reshape the independent central bank. The Federal Open Market Committee (FOMC) is widely expected to leave its baseline borrowing rate unchanged,

In the first interest-rate decision of 2026, the Federal Reserve kept rates steady as politcal pressure grows from Trump. Fed Chair Jerome Powell is set to at 2:30 p.m. ET., as a DOJ investigation looms.

From mortgage rates to auto loans and credit cards, here’s a look at how the upcoming January Fed decision may affect your finances.

Despite three Fed rate cuts at the end of last year, the top CD rate climbed from 4.30% to 4.50% earlier this month. Banks and credit unions compete for deposits, and a single standout offer can reset the leading CD rate.

Fed holds rates at 3.5%–3.75%, keeping mortgages high, credit cards costly, and signaling patience before any further cuts.