If the Federal Reserve cuts its benchmark rate this year, it will push savings and CD rates lower. Here's what the central bank says it expects right now.

Prices are now projected to rise faster than expected at least in part and perhaps largely due to Trump's plans to levy duties on imports from U.S. trading partners, Fed Chair Powell said.

To cool the economy and bring inflation under control, the Fed embarked on an aggressive campaign to raise the federal funds rate during 2022 and 2023. The final hike was in August 2023, with the rate settling at a two-decade high of 5.33% -- far above its pandemic-era low point of 0.13%.