Business
What the Fed’s Rate Decision Means for Loans, Credit Cards, Mortgages and More
The Federal Reserve is expected to keep its key rate steady on Wednesday, after a series of cuts that lowered rates by a full percentage point last year.
That means consumers looking to borrow are likely to have to wait a bit longer for better deals on many loans, but savers will benefit from steadier yields on savings accounts.
The central bank is waiting for more clarity on the economic outlook and the impact of President Trump’s policies on tariffs, immigration, and widespread federal job cuts. Mr. Trump has publicly attacked Fed Chair Jerome H. Powell and his colleagues for keeping borrowing costs too high.
The Fed’s benchmark rate is set at a range of 4.25 to 4.5 percent. In an effort to tamp down inflation, the central bank began lifting rates rapidly — from near zero to above 5 percent — between March 2022 and July 2023. Prices have cooled considerably since then, and the Fed pivoted to rate cuts, lowering rates in September, November and December.
Mr. Trump’s inflation-stoking polices could prompt the Fed to delay more rate cuts. But at the same time, longer-term interest rates set by the markets have been extremely volatile, influencing a wide range of consumer and business borrowing costs.
Auto Rates
What’s happening now: Auto rates have been trending higher and car prices remain elevated, making affordability a challenge. And that is before U.S. tariffs threaten to push prices up even more.
Car loans tend to track with the yield on the five-year Treasury note, which is influenced by the Fed’s key rate. But other factors determine how much borrowers actually pay, including your credit history, the type of vehicle, the loan term and the down payment. Lenders also take into consideration the levels of borrowers becoming delinquent on auto loans. As those move higher, so do rates, which makes qualifying for a loan more difficult, particularly for those with lower credit scores.
The average rate on new car loans was 7.2 percent in March, according to Edmunds, a car shopping website, unchanged from February and March 2024. Rates for used cars were higher: The average loan carried an 11.5 percent rate in March, compared with 11.3 percent in February and 11.9 percent in March 2024.
Where and how to shop: Once you establish your budget, get preapproved for a car loan through a credit union or bank (Capital One and Ally are two of the largest auto lenders) so you have a point of reference to compare financing available through the dealership, if you decide to go that route. Always negotiate on the price of the car (including all fees), not the monthly payments, which can obscure the loan terms and what you’ll be paying in total over the life of the loan.
Credit Cards
What’s happening now: The interest rates you pay on any balances that you carry had edged slightly lower after the most recent Fed cuts, but the decreases have slowed, experts said. Last week, the average interest rate on credit cards was 20.09 percent, according to Bankrate.
Much depends, however, on your credit score and the type of card. Rewards cards, for instance, often charge higher-than-average interest rates.
Where and how to shop: Last year, the Consumer Financial Protection Bureau sent up a flare to let people know that the 25 biggest credit-card issuers had rates that were eight to 10 percentage points higher than smaller banks or credit unions. For the average cardholder, that can add up to $400 to $500 more in interest a year.
Consider seeking out a smaller bank or credit union that might offer you a better deal. Many credit unions require you to work or live someplace particular to qualify for membership, but some bigger credit unions may have looser rules.
Before you make a move, call your current card issuer and ask them to match the best interest rate you’ve found in the marketplace that you’ve already qualified for. And if you do transfer your balance, keep a close eye on fees and what your interest rate would jump to once the introductory period expires.
Mortgages
What’s happening now: Mortgage rates have been volatile. Rates peaked at about 7.8 percent late last year and had fallen as low as 6.08 percent in late September. Solid economic data and concerns about Mr. Trump’s potentially inflationary agenda pushed rates a bit higher again, though they’ve steadied in recent weeks.
Rates on 30-year fixed-rate mortgages don’t move in tandem with the Fed’s benchmark, but instead generally track with the yield on 10-year Treasury bonds, which are influenced by a variety of factors, including expectations about inflation, the Fed’s actions and how investors react.
The average rate on a 30-year fixed-rate mortgage was 6.76 percent as of May 1, down from 6.81 percent the previous week and 7.22 percent a year ago.
Other home loans are more closely tethered to the central bank’s decisions. Home-equity lines of credit and adjustable-rate mortgages — which carry variable interest rates — generally adjust within two billing cycles after a change in the Fed’s rates.
Where and how to shop: Prospective home buyers would be wise to get several mortgage rate quotes — on the same day, since rates fluctuate — from a selection of mortgage brokers, banks and credit unions.
That should include: the rate you’ll pay; any discount points, which are optional fees buyers can pay to “buy down” their interest rate; and other items like lender-related fees. Look to the “annual percentage rate,” which usually includes these items, to get an apples-to-apples comparison of your total costs across different loans. Just be sure to ask what’s included in the A.P.R.
Savings Accounts and C.D.s
What’s happening now: Everything from online savings accounts and certificates of deposit to money market funds tend to move in line with the Fed’s policy.
Savers are no longer benefiting from the juiciest yields, but you can still find returns at online banks of 4 percent or more. “The Fed taking its foot off the gas with rate cuts means that these yields are likely to stay high for a while, but it won’t last forever,” said Matt Schulz, chief consumer finance analyst at LendingTree, the online loan marketplace.
Traditional commercial banks’ yields, meanwhile, have remained anemic throughout this period of higher rates. The national average savings account rate was recently 0.61 percent, according to Bankrate.
Where and how to shop: Rates are one consideration, but you’ll also want to look at providers’ history, minimum deposit requirements and any fees (high-yield savings accounts don’t usually charge fees, but other products, like money market funds, do). DepositAccounts.com, part of LendingTree, tracks rates across thousands of institutions and is a good place to start comparing providers.
Check out our colleague Jeff Sommer’s columns for more insight into money-market funds. The yield on the Crane 100 Money Fund Index, which tracks the largest money-market funds, was 4.14 percent as of Tuesday, down from 5.15 percent in February 2024.
Student Loans
What’s happening now: There are two main types of student loans. Most people turn to federal loans first. Their interest rates are fixed for the life of the loan, they’re far easier for teenagers to get and their repayment terms are more generous.
Current rates are 6.53 percent for undergraduates, 8.08 percent for unsubsidized graduate student loans and 9.08 percent for the PLUS loans that both parents and graduate students use. Rates reset on July 1 each year and follow a formula based on the 10-year Treasury bond auction in May.
Private student loans are a bit of a wild card. Undergraduates often need a co-signer, rates can be fixed or variable and much depends on your credit score.
Where and how to shop: Many banks and credit unions want nothing to do with student loans, so you’ll want to shop around extensively, including with lenders that specialize in private student loans.
You’ll often see online ads and websites offering interest rates from each lender that can range by 15 percentage points or so. As a result, you’ll need to give up a fair bit of information before getting an actual price quote.
Business
Battered by ICE raids, L.A.’s Fashion District desperately needs Black Friday miracle
Lizzie Osorio remembers customers flooding Lion Boots in early May, browsing embroidered shoes and tasseled suede dresses.
Beyoncé had four concerts scheduled in Los Angeles at SoFi Stadium for her Cowboy Carter tour. So the store tucked in Santee Alley, where 24-year-old Osorio works selling cowboy boots and other Western-style clothing, was the perfect stop for fans.
Osorio expected, or perhaps hoped, the store would see similar traffic at the start of the Thanksgiving holiday week.
After the tumult of President Trump’s immigration crackdown, that remains to be seen. Over the summer, several raids in the neighborhood sparked protests. But the mass arrests and fears of deportation turned the Fashion District into a ghost town for several weeks after, with storefronts shuttered and frightened workers staying home.
The story was the same in other business districts that cater to immigrants. Although conditions have improved in recent months, merchants are still feeling the pain and in desperate need of a holiday retail miracle.
Shoppers stroll through the Santee Alley in downtown’s Fashion District where business owners are working to recover from losses caused by recent immigration enforcement.
Local officials and activists are encouraging people to shop on Black Friday and beyond, including by holding a festival over the weekend. But it remains unclear how many will feel safe enough to come out.
Some merchants are “living sale to sale, customer to customer,” said Anthony Rodriguez, president of the Fashion District’s business improvement district, a private group of property owners in the area.
“These aren’t big-box stores,” Rodriguez said. “These are family-owned and, in some cases, generational businesses that more than ever need L.A.’s support. If people can come down and just spend $10 to $15 … that’s how we can make a difference.”
On Monday, Osorio said she made just one sale: a pair of utility boots.
She opened the store at 9:30 a.m. and sold the boots at around 2 p.m. They had been marked down $30 from their typical price of $160 because customers have been so reluctant to spend money, she said.
“We are waiting for the good times,” Osorio said. “Honestly, I felt like it was going to be better this week, but it’s been really, really slow. We just pray and keep the faith. Let’s see what happens.”
Small businesses in the area — which includes the historically vibrant, bustling open-air shopping corridor Santee Alley, known for bargain prices — are looking for ways to recoup some of their losses through holiday sales.
Shoppers stroll along Santee Alley in downtown’s Fashion District. More than half a dozen businesses in the alley and on Santee Street said their sales remained down after the onslaught of federal immigration raids, with some doing better than others.
Foot traffic in the area is back at levels seen before federal immigration raids began in Los Angeles in early June, according to the business improvement district.
But Rodriguez said traffic fluctuates day to day and is “at the mercy” of rumors, at times false, of federal enforcement operations circulated among group chats of merchants and community members.
Such alerts prompt businesses to shut down at a moment’s notice with “people literally running from their stores,” Rodriguez said. He said that, one day, agents from the U.S. Fish and Wildlife Service were conducting an investigation in the area and were confused for Customs and Border Protection officers.
Rodriguez said there are “very valid reasons” to pay attention to alerts but that minimizing their harmful effects is crucial for economic recovery.
Visitors to stores and businesses in the Fashion District dropped dramatically in the week or so after the initial raids on June 6. Foot traffic in the Fashion District dropped 33% while visitors to Santee Alley specifically dropped by 50%, according to the business improvement district.
Rodriguez said it took at least three weeks to recover foot traffic, and even so, vendors are struggling because “people are not spending like they used to.”
And the typical holiday boost has yet to make an appearance, Rodriguez said.
“As of right now, we are not seeing the holiday spike we have seen in previous years,” he said.
In May, the Fashion District saw some 1.98 million visitors, while in June that number dropped to 1.2 million, according to the group. In September, the district saw 1.3 million visitors, far below the the 1.5 million the area saw in the same period last year.
Santee Alley in downtown’s Fashion District where business owners are working to recover from losses caused by recent immigration enforcement.
Pop music blared from open doors on Monday afternoon on Santee Street as the light faded. A smattering of storefronts were closed, but most were open, ready to welcome tourists and local families doing their holiday shopping. Clumps of customers gathered. The alley was lively compared with the weeks after the first summer raids.
Maria Fuertes, 43, and her daughter had prowled the area for more than seven hours, since 9 a.m., shopping for outfits for a December wedding. They had made the more-than-hourlong trek from Eastvale in Riverside County to look for formal dresses and shoes. Fuertes said she often shops in the area around the holidays and that it “feels empty” compared to years past.
“It’s kind of creepy and lonely,” Fuertes said.
More than half a dozen businesses in the alley and on Santee Street told The Times their sales remained down after the onslaught of federal immigration raids, with some doing better than others. A lingerie shop saw a dip but not a severe one, with online sales remaining strong. The owner of an accessories store said business was down 30%, while an employee at a jewelry store said business was down 70%.
A local merchants association known as Somos los Callejones and the Los Angeles Tenants Union partnered with Councilmember Ysabel Jurado to host a street festival Saturday in an effort to attract customers in the lead-up to Black Friday.
According to Jurado’s office, the festival drew some 500 attendees. Vendors set up booths and racks of clothing along Olympic Boulevard between Santee Street and Maple Avenue, which was closed to vehicle traffic. The event featured live music, and organizers raffled off 10 turkeys.
Shoppers stroll along Maple Avenue in downtown’s Fashion District.
The raffling of turkeys highlighted the food insecurity many families in the area are facing, Jurado said in an interview. Some have lost their primary breadwinners to the Trump administration’s deportation efforts, and children have begun to skip school to keep their households afloat.
“Some were so excited to win [turkeys],” Jurado said, adding that the food insecurity “has been really sobering.”
“These are the realities that people are continuing to grapple with,” she said, “as their loved ones have been taken.”
Businesses said they were marketing deals when possible — and emphasizing customer service.
The California Mirage Jewelry Design Center, which is on prime real estate at the entrance to Santee Alley and has been in operation since the 1990s, has been offering 30% off on all items since last week, a promotion that will last through Black Friday.
Carolina Medrano, 38, a store employee who on Monday evening rearranged twinkling gold chains, said that even with the discount, business had been “super slow.”
“I believe everybody is struggling,” said Jessica Morales, 40, an employee at a nearby dress retailer who asked that the store not be named, since she didn’t have permission from her supervisor.
As she used a long pole with a hook to hang a glittery pink dress on a high rack, Morales noted that some customers had become more aggressive in trying to negotiate a lower price, threatening to go to other vendors.
She tries to emphasize the quality and variety of the store’s dresses, and that some other nearby retailers are no longer able to afford to keep their inventory well-stocked.
Some customers talk of quinceañeras being canceled, or their husbands telling them to stay home from parties for fears of raids, Morales said.
“People are trying to save their money. Everyone’s scared to come out,” Morales said. “You have to find a way to connect with customers.”
Women’s attire on display at the corner of Olympic Boulevard and Maple Avenue in downtown’s Fashion District where business owners are working to recover from losses caused by recent immigration enforcement.
The hit to sales in the aftermath of immigration raids comes as the local economy is already suffering, weakened by the rise of e-commerce, tourism disruptions from COVID-19 lockdowns and inflationary and other economic pressures pushing consumers to spend less.
Ilse Metchek, a former president of the California Fashion Assn. who has worked in the industry since the 1950s, said the merchandise sold in Santee Alley had changed in recent years. It shifted from the good-quality excess products of local brands — which were then sold at bargain prices — to imitation or cheap goods often imported from abroad.
Famously, Richard Riordan, who served as mayor of Los Angeles from 1993 to 2001, “took a very publicized walk [through Santee Alley] where he paid $10 for a silk shirt and made a whole big to-do about it,” Metchek said.
The move by then-President Reagan to grant amnesty, giving legal status and a path to citizenship to many immigrants lacking authorization, helped pave the way for a booming fashion economy, she said.
Immigration crackdowns in recent years, regulations that have increased labor costs and China’s manufacturing boom in the early 2000s have created a difficult economy for California fashion brands and workers.
“It’s a pity,” Metchek said. “There’s a clear pattern of why and what has happened here. This is not nuclear physics.”
Gloria Andrade, 53, owns a business selling makeup, accessories and miscellaneous electronics in the Maple Alley Fashion Center in downtown L.A. that has operated for some 25 years. In May, her family opened up a second storefront nearby in Santee Alley, without anticipating the raids and resulting downturn.
A view of the corner of Olympic Avenue and Santee Street in downtown’s Fashion District where business owners are working to recover from losses caused by recent immigration enforcement.
Andrade said the rent for her new location is about $4,500, and that she’s two months behind. Many neighboring businesses are in a similar situation, she said.
“It’s the first day of vacation and nobody came,” she said of the Thanksgiving holiday. “We’ll wait for Christmas to see how it goes.”
Business
Fall Art Auction Quiz: Are You Smarter Than a Billionaire?
In a single week, collectors spent a whopping $2.2 billion on art at New York’s auction houses. While that $236 million Klimt portrait made headlines, plenty of other paintings and sculptures sold for sums that might surprise you.
Can you guess which of these works sold for more?
Note: Listed sale prices include auction fees.
Image credits: “Paradise Pies (VI): Red” via Sotheby’s; “Untitled” via Christie’s; “From our side” via Christie’s; “TAGOMIZOR” via Christie’s; “Blumenwiese (Blooming Meadow)” via Sotheby’s; “Waldabhang bei Unterach am Attersee (Forest Slope in Unterach on the Attersee)” via Sotheby’s; “Cowboy Eating with Shoulder Hole” via Sotheby’s; “Untitled (Cowboy)” via Christie’s; “A Clear Unspoken Granted Magic” via Christie’s; “Sarah” via Phillips; “Modern Painting Triptych II” via Sotheby’s; “Nude with Blue Hair, State I” via Christie’s; “Abstraktes Bild” via Christie’s; “Sunflower V” via Christie’s; “Wall Relief with Bird” via Christie’s; “Hulk (Rock)” via Sotheby’s; “America” via Sotheby’s; gold by MirageC via Getty Images.
Zachary Small contributed reporting. Produced by Josephine Sedgwick.
Business
Fubo TV blasts NBCUniversal for pulling channels
Subscribers of sports streaming service Fubo TV have lost access to channels owned by NBCUniversal in the latest TV distribution dust-up.
Fubo blasted NBCUniversal for its stance during collapsed contract negotiations, resulting in a blackout of NBCUniversal channels just days before Thanksgiving when scores of viewers hunker down for turkey and football. NBC is set to broadcast the Macy’s Thanksgiving Day Parade, the National Dog Show and Thursday night’s NFL game featuring the Cincinnati Bengals battling the Baltimore Ravens. The events also will stream on Peacock.
The blackout, which also includes Bravo, CNBC and Spanish-language Telemundo, affects Fubo’s nearly 1.6 million customers.
The dispute comes a month after NBCUniversal’s rival, Walt Disney Co., acquired the controlling stake of Fubo and folded the smaller sports-centric offering into Disney’s Hulu + Live TV. (Hulu + subscribers still have NBCUniversal channels available because they are covered by a separate distribution contract.)
Fubo customers could also miss NBC’s broadcast of the Macy’s Thanksgiving Day Parade.
(Eduardo Munoz Avarez / Associated Press)
In its Tuesday statement, Fubo alleged that NBCUniversal had refused to give Fubo leeway to offer just a few of its channels — rather than its entire portfolio. Fubo is looking to control costs and designed its product to be a slimmed-down version of a bulky bundle — but one with a heavy complement of sports networks.
Fubo also took issue with NBCUniversal negotiating on behalf of the cable channels that NBCUniversal plans to cast off in January as part of a corporate split.
Legacy cable channels including MS Now (formerly MSNBC), Syfy, CNBC, USA Network and Golf Channel will be form the new publicly traded company, Versant.
“Fubo offered to distribute Versant channels for one year,” Fubo said in its statement, adding that it views most of those networks as “not being worth the cost.”
“NBCU wants Fubo to sign a multi-year deal – well past the time the Versant channels will be owned by a separate company,” Fubo said. “NBCU wants Fubo subscribers to subsidize these channels.”
NBCUniversal, owned by cable and broadband giant Comcast, countered that it had offered Fubo similar terms to those contained in deals struck with other pay-TV distributors — but Fubo balked.
“Unfortunately, this is par for the course for Fubo,” NBCUniversal said. “They’ve dropped numerous networks in recent years at the expense of their customers, who continue to lose content.”
The Nov. 21 blackout came one week after Disney resolved a separate, high-profile dispute with Google’s YouTube TV. That dispute, which resulted in a two-week blackout of Disney-owned channels, including ESPN, for about 10 million YouTube TV customers, hinged on fee increases sought by Disney.
The two companies also tussled over YouTube TV’s desire to offer the ESPN streaming app to its customers at no extra cost.
They reached a compromise, and YouTube came away with authorization to provide some ESPN streaming content.
In September, YouTube TV avoided a similar blackout of NBC channels by making a deal just hours before the deadline.
Disney acquired 70% of Fubo TV in October 2025.
(Justin Sullivan / Getty Images)
Fubo pointed to NBCUniversal’s recent deals with YouTube TV and Amazon Prime Video, which allows those companies to offer NBC’s streaming app Peacock as part of their channel stores. Fubo alleged that NBC refused to give Fubo the same rights.
“Fubo is committed to bringing its subscribers a premium, competitively-priced live TV streaming experience with the content they love,” Fubo said. “That includes multiple content options, including a sports-focused service, that can be accessed directly from the Fubo app. We hope NBCU reconsiders their stance, or we’ll be forced to move forward without them.”
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