- The Fed is expected to raise rates by a half percentage point after its policy meeting Wednesday.
- That’s a step down from its 0.75-point interest rate hikes after the last four its
- However, consumers aren’t likely to find comfort in this as the cost of their debt rises again.
The Federal Reserve’s expected to take its foot off the accelerator but continue moving ahead with more interest rate hikes.
It’s expected to boost interest rates for the seventh consecutive time this year on Wednesday afternoon, but “only” by a half point, instead of the three-quarter percentage-point jump we’ve seen after each of the last four policy meetings. The slower pace will give the economy a chance to digest the string of aggressive rate hikes so far this year, but consumers shouldn’t get complacent. There’s likely more rate indigestion ahead, and Americans should brace themselves for even higher interest rates, economists say.
Story Credit: usatoday.com