Fed Raises Interest Rates for First Time in Three Years

The Federal Reserve is expected to raise its benchmark interest rate for the first time in over three years. The move, scheduled for 2:30 p.m. on Wednesday, aims to combat rising inflation.

Inflation has been above the central bank's 2 percent annual target, with the Consumer Price Index rising at an annual rate of 3.4 percent in August.

The interest rate hike is likely to be a 0.25 percent increase. This change will affect borrowing costs for consumers and businesses alike.

Banks are expected to raise interest rates on credit cards and other lending products, impacting existing balances as well as new purchases.