Fed Raises Interest Rates for First Time in Three Years

The Federal Reserve is expected to raise interest rates for the first time in three years on Wednesday. This move aims to combat stubborn inflation and bring prices under control.

Investors are betting that the central bank will increase its benchmark interest rate by a quarter percentage point, from 3% to a range of 3.75-4%. This would make borrowing money more expensive for car purchases, business growth, and credit card balances.

The US war with Iran has contributed to inflation, pushing up oil and gasoline prices. Diesel fuel is at an all-time high, topping $6 per gallon, which could increase the cost of goods transported by truck or train.