When the Fed hiked rates in 2022 and 2023, the interest rates on most consumer loans quickly followed suit. Even though the central bank lowered its benchmark rate three times in 2024, those consumer rates are still elevated, and are mostly staying high, for now.

Many credit cards have a variable rate, so there’s a direct connection to the Fed’s benchmark.

With a rate cut likely postponed until July, the average credit card annual percentage rate has stayed just over 20% this year, according to Bankrate — not far from 2024’s all-time high. Last year, banks raised credit card interest rates to record levels and some issuers said they are keeping those higher rates in place.

At the same time, “more people are carrying debt because of higher prices,” said Ted Rossman, senior industry analyst at Bankrate. Total credit card debt and average balances are also at record highs.

2. Mortgages

Mortgage rates don’t directly track the Fed, but are largely tied to Treasury yields and the economy. As a result, uncertainty over tariffs and worries about a possible recession are dragging those rates down slightly.

The average rate for a 30-year, fixed-rate mortgage is 6.91% as of May 6, while the 15-year, fixed-rate is 6.22%, according to Mortgage News Daily. 

Mortgage rates “are showing signs of life after a slow couple of years,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. 

But for potential home buyers, that’s not enough of a decline to give the housing market a boost. “Many borrowers are reluctant to take on a loan at today’s rates, particularly if they currently have a loan at a significantly lower rate,” Raneri said.

3. Auto loans

Auto loan rates are tied to several factors, but the Fed is one of the most significant.

With the Fed’s benchmark holding steady, the average rate on a five-year new car loan was 7.1% in April, while the average auto loan rate for used cars is 10.9%, according to Edmunds. At the end of 2024, those rates were 6.6% and 10.8%, respectively.

With interest rates near historic highs and car prices rising — along with pressure from Trump’s 25% tariffs on imported vehicles — new-car shoppers are facing bigger monthly payments and an affordability crunch, according to Joseph Yoon, Edmunds’ consumer insights analyst.

“Consumers continue to face a challenging market, now with added uncertainty of the tariff impact on their next vehicle purchase,” Yoon said. “Prices and interest rates remain elevated, and there’s no fast or easy answer as to how the tariffs will affect inventory levels — and therefore pricing — as buyers try to make sense of an increasingly complex shopping journey.” 

4. Student loans

Federal student loan rates are fixed for the life of the loan, so most borrowers are somewhat shielded from Fed moves and recent economic turmoil.

Interest rates for the upcoming school year will be based in part on the May auction of the 10-year Treasury note, and are expected to drop slightly, according to higher education expert Mark Kantrowitz. Undergraduate students who took out direct federal student loans for the 2024-25 academic year are paying 6.53%, up from 5.50% in 2023-24.

Borrowers with existing federal student debt balances won’t see their rates change, adding to the other headwinds some now face along with fewer federal loan forgiveness options.

5. Savings

While the central bank has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate.

“Continued high interest rates are discouraging for those with debt but awesome for savers,” said Matt Schulz, chief credit analyst at LendingTree. 

Yields for CDs and high-yield savings accounts may not be as high as they were a year ago, but the Fed’s rate cut pause has left them well above the annual rate of inflation, Schulz said. Top-yielding online savings accounts currently pay 4.5%, on average, according to Bankrate.

“With all of the uncertainty in the economy right now, it makes sense for people to act now to lock in CD rates and take advantage of current high-yield savings account returns while they still can,” Schulz said.

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The interest rate on federal direct undergraduate loans could be 6.39% in the 2025-2026 academic year, estimates Kantrowitz. The undergraduate rate for the 2024-2025 year is 6.53%.

At those new undergraduate rates, every $10,000 a family borrowed would lead to a $113 monthly student loan payment after graduation, assuming the student enrolled in a standard 10-year repayment plan. With interest, the borrower would repay $13,559.87 over that decade.

For graduate students, loans will likely come with an 7.94% interest rate, compared with the current 8.08%, Kantrowitz finds.

PLUS loans for graduate students and parents may have a 8.94% interest rate, a decrease from 9.08% now.

The government sets interest rates on its education loans once a year. The rates, which run from July 1 to June 30 of the following year, are based in part on the May auction of the 10-year Treasury note.

Kantrowitz based his calculations on the Treasury Department’s announced high yield rate on Tuesday of 4.34%.

The IRS has lost nearly one-third of tax auditors amid sweeping cuts from Elon Musk’s Department of Government Efficiency, a watchdog report found.

As of March 2025, the agency’s workforce had fallen by more than 11,000 employees, or 11%, due to probationary terminations and the deferred resignation program, according to a May 2 report from the Treasury Inspector General for Tax Administration.

The percentage of separated employees was significantly higher for certain departments — including so-called “revenue agents,” who conduct audits for the IRS. As of March, the agency lost 3,623 revenue agents, or 31%, according to the report.

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The TIGTA report came the same day as President Donald Trump’s fiscal year 2026 discretionary budget request, which called for a nearly $2.5 billion IRS budget cut to end the “weaponization of IRS enforcement.”

U.S. Treasury Secretary Scott Bessent on Tuesday defended the reduced spending request in a House of Representatives Appropriations subcommittee hearing. He said the federal government has cut $2 billion from the agency’s information technology budget “without any operational disruptions.”

As of April 25, the IRS processed more than 140 million returns during the 2025 filing season, slightly more than the previous year, according to agency data.

The Treasury did not respond to CNBC’s request for comment about the TIGTA report.

In a March letter to former acting IRS commissioner Melanie Krause, more than 130 House Democrats warned that cutting compliance staff could limit the agency’s ability to collect unpaid taxes from “wealthy tax dodgers.” The lawmakers were responding to IRS staffing cuts that began in late February.

Those cuts hurt the agency’s ability to “improve collections, crack down on complex tax avoidance and evasion by high-income taxpayers and large businesses,” the lawmakers wrote.

Audits of the top 0.1% of taxpayers returned more than $6 in revenue for every dollar spent in resources, according to a 2023 working paper from researchers at the U.S. Department of the Treasury, Massachusetts Institute of Technology, the Wharton School and University of Sydney.

At the House Appropriations subcommittee hearing on Tuesday, Bessent said “collections” were among his IRS priorities. But he expects to meet revenue goals via “smarter IT” and the “AI boom” rather than via “unseasoned collections agents.”

“I would expect that collection would continue to be very robust,” he said.