Key Takeaways The Federal Reserve is widely expected to hold its key interest rate steady when it meets Wednesday, but it's up in the air whether it will cut interest rates later in the year.The Fed may be forced to bail out the economy by lowering interest rates if President Donald Trump's tariffs tank the job market.

When the Fed adjusts its benchmark interest rate, interest rates on savings accounts and short-term loan vehicles follow quickly. Long-term rates like mortgages, however, take their cues from the broader economic outlook and fiscal indicators rather than directly from policymakers' moves.