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Mortgage rates are still high. Credit cards are brutal. (The average APR is nearly 25%!) And if you've been eyeing a new car or home, the cost of borrowing probably feels more punishing than ever.

So why isn't the Federal Reserve doing anything to help?

At this week's Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell confirmed that interest rates will remain steady in the 4.25% to 4.5% range. That's the same level they've been at since December, and Powell offered no sign of immediate relief. In fact, while the Fed still projects two rate cuts by year-end, most economists don't expect the first one to come before September. (And some economists are even saying two cuts may be optimistic.)

If you're a borrower — and let's face it, total household debt reached $18 trillion last year, so a lot of us are borrowing — that might feel like a slap in the face.

President Trump has certainly made his position loud and clear, calling Powell everything from a "numbskull" to "stupid" for keeping rates so high, and has even threatened to fire him (something a president doesn't actually have the power to do). And while Trump is certainly the loudest Powell critic, he's not the only one with complaints. Millions of Americans are eager for the Fed to offer immediate relief from soaring borrowing costs.

In fact, it's perfectly normal to want relief, especially if you're currently struggling. It's exactly why Trump and others have been pressuring Powell and the Fed to cut rates quickly, with Trump demanding a dramatic full-point cut and calling it "rocket fuel" for the economy. Vice President JD Vance has chimed in too, labeling Powell's steady approach "monetary malpractice."

But here's the twist — and it's important to understand: Jerome Powell isn't ignoring you. And he's certainly not committing "monetary malpractice."

If you zoom out, Powell's decision actually makes a lot of sense... and may ultimately protect the very people who feel squeezed the most right now.

He's Not Ignoring Your Pain — He's Trying to Prevent More of It

Let's be clear: Borrowing money is still more expensive than we're used to. For over a decade, interest rates were abnormally low — near-zero, in fact, for much of the 2010s. That era made mortgages feel cheaper, personal loans more accessible, and credit card balances less punishing.

But it also created the perfect environment for inflation to take off — and when it did in 2021 and 2022, it hit hard.

Powell's Fed responded by raising interest rates fast and hard to tame that inflation. And while prices have cooled from their peak, Powell is choosing patience over premature celebration. He's been explicit: The Fed wants to wait and see how new risks — especially President Trump's aggressive new tariff policy — affect inflation going forward.

While May's inflation data came in relatively mild (2.4% CPI), the Fed expects inflation to climb again by year's end — with its preferred gauge, the PCE index, potentially hitting 3%.

Why? Because of tariffs.

Trump's sweeping new tariffs haven't yet worked their way through the economy. Once they do — once businesses burn through old inventory and adjust supply chains — prices could begin rising again. Powell's waiting to see whether that risk materializes. And until there's clarity, he's holding steady.

If the Fed cuts rates too soon, borrowing might get cheaper in the short term… but it could reignite inflation, undo progress, and force even harsher action down the line.

It's a move that prioritizes economic stability over political noise — especially given the pressure he's under.

The Economic Prescription We Need (But Nobody Wants)

There's a lecture doctors always give when they prescribe antibiotics. "Finish the entire course, even if you start to feel better." Stopping early can bring the infection back — stronger, harder to treat, and more dangerous than before.

The Fed's policy works the same way. Powell knows that inflation isn't just inconvenient — it can devastate families, erode retirement savings, and crush dreams of financial stability. He also knows that if he cuts rates too soon, we risk having to go through this painful process all over again.

It's frustrating to wait, of course. But waiting until inflation is truly under control is the only way to ensure your paycheck keeps pace with your grocery bill, your savings stay secure, and your debt becomes more manageable in the long run.

This patient, cautious approach isn't glamorous. It doesn't win applause or praise in the short term. It doesn't create instant relief. But it's exactly how central banking is supposed to work: with discipline, caution, and long-term vision.

Powell's approach to taming inflation brings to mind another Fed Chair tasked with putting out an inflation inferno — Paul Volcker.

Back in the late 1970s and '80s, critics loudly called for Volcker's resignation, accusing him of causing unnecessary pain with aggressive rate hikes. But by standing firm — even when unemployment soared and interest rates reached levels that seem almost unbelievable today — Volcker saved the economy from an even worse fate. His courageous stance paved the way for decades of prosperity, economic stability, and low inflation. Today, he's celebrated as one of the greatest central bankers of all time.

Powell finds himself in a remarkably similar bind. Inflation today isn't nearly as severe as what Volcker faced, but the pressures are similar: political demands, economic uncertainty, and very real consumer pain. It takes a rare kind of courage to resist the calls for instant relief, especially when those calls are coming from the highest offices in the land.

But Powell knows his history. He knows that a rushed rate cut might win quick applause and political points — but could reignite the very inflation we've spent years trying to tame. He also knows the cost of making that mistake would be devastating — especially for the everyday Americans who've already been through so much.

But Aren't High Rates Hurting Regular People While He Waits?

Yes, higher rates for longer has certainly made things tighter for many Americans. But it's also helping them — in ways that don't always make headlines.

The job market is still remarkably strong. Despite all the rate hikes, unemployment remains near historic lows. We are starting to hear whispers of weakness, and the Fed is projecting unemployment will rise slightly to 4.5% by the end of the year, but that's still well within a healthy range. This isn't the 1980s. Powell's actions haven't crashed the job market.

Savers are finally earning real returns. After years of paltry interest, savings accounts, CDs, and money market funds are paying 4%–5% yields. That's meaningful income for retirees and cautious households. It also rewards those who have avoided high-interest debt.

Wage growth is outpacing inflation in some sectors. After years of shrinking purchasing power, some workers — especially in service and hospitality industries — are finally seeing real wage gains.

Inflation has already come down a lot. It's easy to forget just how bad it got. In 2022, inflation peaked at over 9%. Today, it's been cut by more than half. That progress didn't happen by accident — it happened because of deliberate, difficult monetary policy.

Powell Is Choosing the Long Game

In a world that seems to crave instant fixes and political grandstanding, Powell is staying grounded. His "wait-and-see” approach may not win him any popularity contests, but it's rooted in a simple truth... inflation can't be defeated halfway.

That doesn't mean the Fed won't cut rates. It just means they're going to do it at the right time, not the most convenient one.

And when that time comes — likely this fall or winter, but potentially even later — the relief will be real and sustainable, not temporary and risky.

So yes, high rates are frustrating. But they're also doing their job. And Powell's patience today may be the reason your dollar stretches further tomorrow.