The Federal Reserve is likely to hold interest rates steady this week. Here's what that means for your borrowing costs

On the heels of a stronger-than-expected jobs report and elevated inflation readings, the Federal Reserve is expected to hold interest rates steady at the end of its two-day meeting this week — despite pressure from President Donald Trump. Federal Reserve Chair Jerome Powell has repeatedly said that monetary policy decisions are completely separate from politics. To be sure, many Americans are getting squeezed by high prices and high borrowing costs, while the potential inflation impacts from a costly trade war weigh heavily on household budgets. "Uncertainty rules amid a trade war and the ever-changing landscape of tariffs," said Greg McBride, Bankrate's chief financial analyst. Once the federal funds rate comes down, borrowing costs could decrease across a variety of consumer debt, such as auto loans, credit cards and mortgage rates, making it easier to access cheaper money.