The Federal Open Market Committee (FOMC) meets eight times a year. The next decision is May 5-6, 2026. For the 80 million Americans with a mortgage, credit card, or HYSA, every 25 bps move is money.
What each rate does
### Fed funds rate Sets overnight interbank lending. Direct impact on Prime Rate (Fed funds + 3%), which drives: - HELOCs (Prime + 1-3%) - Credit card APRs (Prime + 12-20%) - Variable-rate student loans
### 30-year fixed mortgage NOT directly tied to Fed funds. Tracks the 10-year Treasury yield, which is driven by inflation expectations and QT/QE flows. A 25 bps Fed cut might move mortgages by 10 bps — or not at all, if markets already priced it in.
### HYSA / savings Typically moves within 1-2 weeks of Fed decisions. Marcus, Ally, SoFi, Wealthfront adjust quickly.
The current picture
With the Fed funds rate at around 4.25-4.50% (check federalreserve.gov for current), 30-year mortgages at ~6.7-7.0%, and HYSA at ~4.2-4.5%, borrowers want cuts and savers want holds.
What you should do
### If you have a mortgage - Above 7%? Watch for 6.5% — the typical refinance break-even — in your local market. - Under 4%? Hold. Make extra principal payments only if you have no higher-rate debt.
### If you have credit card debt Don't wait. Balance-transfer to a 0% APR promo card (15-21 months common). Cut the rate to zero, not to 25%.
### If you have cash sitting in a big-bank savings account at 0.01% Move it today. Marcus, Ally, or a Treasury bill at 4.5%+ is functionally risk-free and pays 450× more.
Run scenarios
Use our Mortgage Calculator and HYSA Compound Calculator to model your specific numbers.