Fed officials are split over inflation risks and the labor-market outlook after December’s rate cut, signaling an uncertain path for policy in 2026.

That means borrowers opting for 30-year mortgage loans right now will save approximately $211 per month compared to last August, translating to about $2,530 annually. On a 15-year mortgage, the savings come to roughly $176 monthly or around $2,112 per year.

Fed officials explained their opposition to the central bank’s decision this week to cut interest rates by a quarter of a percentage point.

Federal Reserve Bank of Cleveland President Beth Hammack said she would prefer interest rates to be slightly more restrictive to keep putting pressure on inflation, which is still running too high.

The next chair of the Federal Reserve might already be a disappointment to President Donald Trump – even before they’re named.

Monthly payments on a $25,000 home equity loan are much more affordable now, considering recent Fed rate cuts.

Federal Reserve Bank of Philadelphia President Anna Paulson said Friday she expects inflation to cool next year though she cautioned there is a risk of a further downturn in the labor market.

Federal Reserve officials who voted against the U.S. central bank's interest rate cut this week said on Friday they are worried that inflation remains too high to warrant lower borrowing costs, particularly given the lack of recent official data about the pace of price increases.

Thanks to its latest decision on Wednesday – its final one for 2025 – the Federal Reserve has now reduced its key overnight lending rate by 1.75 percentage points since it began its rate-cutting cycle in September 2024.

The Fed has cut interest rates for the third time in a row at December's meeting. Fed members were the most divided they've been all year.

The Federal Reserve cut its benchmark interest rate a quarter of a percentage point on Wednesday, opting for its third interest rate cut this year in an effort to revive a sluggish labor market. The reduction of interest rates could deliver some relief for mortgage and credit card borrowers.

Kansas City Federal Reserve President Jeffrey Schmid said he dissented against the central bank's quarter point rate cut this week because inflation is "too hot" and monetary policy should remain modestly restrictive to keep it in check.