Fed will vote on rates less often. What that could mean for borrowers
CNBC · Jessica Dickler ·
Fed Chairman Kevin Warsh said he plans to reduce the number of rate-setting votes, a move some economists say could delay relief for borrowers.
After the Federal Reserve held its benchmark interest rate steady last week, Fed Chairman Kevin Warsh announced plans to reduce the number of rate-setting votes over the next two years. That move could potentially extend the timeline for everyday Americans to see borrowing costs adjust, some experts say.
"Fewer Fed meetings in 2027 could mean consumers wait longer to see relief when borrowing costs are elevated," said James Vrachas, executive director at advisory firm Post Oak Group.
Americans may feel somewhat removed from the Fed, but the central bank's moves have a ripple effect on many types of consumer products, including the borrowing rates for credit cards, home loans and auto financing.