Looking ahead to 2026, the Fed’s own median projection or “dot plot” suggested there would be only one additional 25 basis points cut. This would move the rate to around 3.25% to 3.50% by year end. Market expectations are slightly more dovish, calling for two rate cuts, which would push rates closer to 3%.

The average rate on a 30-year U.S. mortgage fell to its lowest level of 2025 this week, an encouraging sign for prospective home buyers.

Stocks in a range of financial companies fell after President Trump called for credit-card interest rates to be capped at 10% for a year, in his latest attempt to address voters' affordability concerns.