Fed is likely to hold rates steady — here's how that impacts consumer costs

the fed is expected to hold rates steady at next week's policy meeting — likely powell's last as chair. the justice department dropped its criminal investigation into powell, clearing a path for trump's nominee kevin warsh to replace him. futures markets see virtually no chance of a cut, per the cme fedwatch gauge. brent crude has surged more than 55% since the iran war began in late february, pushing up gas and jet fuel prices. employers are pausing hiring, and consumer confidence is at an all-time low. "even if gas spikes were to go away, prices are still higher," said stephen kates, a cfp at bankrate. the fed's benchmark affects borrowing costs unevenly. credit cards have variable rates, so debt costs won't ease soon. auto loan rates remain elevated, pushing buyers into longer loans, per edmunds. 15- and 30-year fixed mortgages track long-term treasury rates, which stay volatile amid mixed signals from trump on the war. federal student loans are fixed from the may 10-year auction, shielding most borrowers. savings yields, tied to the fed rate, remain above inflation — a rare win for savers. the senate banking committee held a hearing tuesday on warsh's nomination. he said the fed would stay independent under his leadership, despite trump's push for deeper cuts. "we should have the lowest interest rate in the world," trump said on cnbc.