The Fed is preparing to raise rates. What if it doesn’t work?

Live updates

1. 14h ago

   Economists Predict Federal Reserve Rate Hike This Wednesday

   The Federal Reserve is preparing to raise interest rates to combat persistent inflation. Economists polled by Reuters indicate a rate hike is likely this Wednesday, with at least one additional increase expected to follow. While the Fed aims to stabilize prices, the move will impact consumer bank accounts, loans, credit cards, and investments. The central bank is weighing the necessity of these hikes against the risk that they may not effectively resolve current inflationary pressures.

   Why it matters

   Interest rate adjustments are the primary tool used by the Fed to control inflation by making borrowing more expensive. Persistent price increases have pushed the odds of a hike higher. This creates a tension between controlling the economy and avoiding excessive financial strain on consumers.

   What is confirmed

   • The Federal Reserve is preparing to raise interest rates.
   • Inflation persists as a driver for potential rate increases.

   Still unconfirmed

   • A rate hike is likely this Wednesday with at least one more to follow.

   What to watch next

   • The Federal Reserve's official rate decision on Wednesday
   • Future inflation data reports
   • Consumer response to increased borrowing costs
   Sources used for this update (7)

   1. CNN — The Fed is preparing to raise rates. What if it doesn’t work?
   2. Reuters — Fed rate hike on Wednesday now likely, say economists, and at least one more to follow: Reuters Poll
   3. CNBC — The Fed is likely to raise interest rates as inflation persists. What that means for consumers
   4. Yahoo Finance — How a Fed rate hike would affect your bank accounts, loans, credit cards, and investments
   5. Morningstar — Why the Odds of a US Fed Interest Rate Hike Just Shot Higher
   6. jen.jiji.com — Mattarella on AI: "States must regain lost sovereignty over private entities"
   7. www.mortgagenewsdaily.com — Verification, Cash Flow Analysis, Credit Reporting, Climate Data Tools; Webcasts
   confidence 80%