Fed Set to Raise Rates Amid Inflation Fears
The Federal Reserve is widely expected to raise interest rates on Wednesday for the first time in over three years. This move aims to combat stubborn inflation, which has been driven up by the US war with Iran and subsequent increases in oil and gasoline prices.
According to investors' bets, the central bank will increase its benchmark interest rate by a quarter percentage point to a range between 3.75% and 4%. This would make borrowing money more costly for consumers, making it pricier to buy cars, grow businesses, or carry credit card balances.
The price of diesel fuel has reached an all-time high, topping $6 per gallon, which could lead to higher costs for goods transported by truck or train. Since April, prices have been rising faster than average wages, making paychecks stretch less far.