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Columbia Business School Professor Brett House spoke with CNBC reporter Jessica Dickler about how Federal Reserve interest-rate decisions influence consumer borrowing costs. House explained that even when the Fed holds rates steady—or signals future cuts—the impact on mortgages, auto loans, credit cards, and savings accounts depends on how financial institutions adjust their pricing. He noted that consumers with variable-rate debt are often affected most quickly, while longer-term fixed-rate loans respond more gradually. House emphasized the importance of understanding how monetary policy filters through the financial system to household budgets.
