Next Fed Meeting: It Starts Oct. 28 and Here's What to Expect
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If you're feeling whiplash from the economy this year, you're not alone. The Federal Reserve is trying to thread the needle on what to do next. Their next big meeting kicks off Oct. 28, and all signs point to another interest rate cut.
These moments always end up having a bigger effect on your wallet than most headlines suggest. Whether you're carrying credit card debt or stashing cash in a savings account, what the Fed does this month will ripple through your finances almost immediately.
What's expected from the Fed
Traders are betting the Fed will trim the federal funds rate by a quarter percentage point, likely landing it in the 3.75% to 4.00% range. That would take us back to the lowest levels since late 2022.
The Fed already cut rates once in September, ending a pause that stretched back to late 2024, and momentum is building for more.
What it means for your money
If the cut happens, borrowing should get a little cheaper. Credit cards, auto loans, and personal loans often track closely with the Fed's moves, so your rates could drop slightly in the coming months. But there's a trade-off: yields on high-yield savings accounts and CDs would likely dip too.
That means anyone sitting on credit card debt may welcome the relief, but savers who've gotten used to 4%-5% yields will probably see smaller numbers as banks adjust. If you've been meaning to lock in a longer-term CD, now might be the moment. Click here to see some of the best CD rates available now.
The Fed's balancing act
The Fed has a dual mandate: stable prices and maximum employment. Normally, those goals don't collide. But this fall, inflation is still running hotter than the Fed's 2% target while the job market is weakening. That puts policymakers in a tough spot.
The September inflation report (due Oct. 15) will weigh heavily on the Fed's debate.
Politics in the background
There's also unusual political drama swirling around the central bank. President Donald Trump has tried to remove Fed Governor Lisa Cook from the voting committee, pushing his own nominee instead. Courts have blocked the move for now, but the Supreme Court could weigh in before or after this meeting.
If Cook were forced out, it would mark a turning point in Trump's effort to reshape the Fed and apply more pressure for steeper cuts. That adds even more uncertainty to how far and how fast rates might fall.
Why this meeting matters more than usual
The Oct. 28 to 29 gathering isn't just about a single rate cut. It's about setting the tone for the rest of the year. If the Fed signals more cuts are on the table, markets will react, and consumer rates will follow. If they hold back, expect volatility as investors recalibrate.
For everyday people, the takeaway is simple: Prepare for lower savings yields, but also for potential breathing room if you're paying off debt. That makes it a good time to revisit your financial setup.
If you've been sitting on cash, now might be the last chance you have at locking in a CD rate anywhere near 4%. Check out our list of the top CDs and open one today.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.