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The Federal Reserve expected to hike Interest Rates today

The Federal Reserve is expected to make history with a rate hike today that could affect your savings.

The Fed’s anticipated actions would increase the rate that banks charge each other for overnight borrowing to 3-3.25%, the highest since the 2008 global financial crisis.

The central bank kicked off its two-day meeting Tuesday and is scheduled to announce its decision this afternoon.

As for what's next after that, Wall Street is divided on whether the Fed will keep hiking rates aggressively in November or if inflation pressures will cool enough to allow the fed to slow the pace for a bit.

The Fed has been boosting borrowing costs at the fastest pace in decades, but so far, its actions have done little to curb the rapid run-up in prices.

The annual inflation rate in August was 8.3% down only slightly from the month before. While the price of gasoline has dropped sharply from its record high in June, and used cars and airline tickets have gotten somewhat cheaper, other costs continue to climb, including essentials such as rent, groceries and electricity.

Price hikes have spread to goods and services that are not directly affected by the pandemic or the war in Ukraine, suggesting that inflation has gained momentum that may not be quickly reversed.

Article Topic Follows: News

Noelia Gonzalez

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