Discover how banks set loan interest rates, from Federal Reserve policies to market trends and borrower creditworthiness, for better financial decisions.

The divergence of opinion on the future of monetary policy is likely to only grow in 2026 as Fed Chairman Jerome Powell reaches the end of his leadership in May. Powell could decide to stay on as a governor, but he has given no indication he would do so and he is a frequent target of criticism from President Donald Trump.

A jobs report to be released on Friday will provide a key gauge of the health of the U.S. economy as the Federal Reserve slashes interest rates in an effort to revive an ailing labor market. The fresh data comes two weeks after a blockbuster report on economic growth appeared to rebuke worries about the wider economy.

See how low your current mortgage rate offers are here.

Find out how lower interest rates encourage investment by reducing borrowing costs for businesses, boosting economic growth and consumer spending.