All eyes are on the Federal Reserve as the central bank kicks off a two-day policy meeting Tuesday, as officials are widely expected to raise short-term interest rates by three-quarters of a percentage point at the conclusion of their meeting Wednesday.
In the face of stubborn inflation, officials are expected to raise the central bank’s benchmark interest rate — the federal funds rate — to a new range of 3.0% to 3.25% from a current range of 2.25 to 2.50%. This would mark the third-straight 75-basis-point rate hike since June, bringing rates to their highest level since 2008.
The Fed is likely to signal that it will raise interest rates more aggressively and expect rates to be higher for longer when it releases a summary of each official’s interest rate expectations known as the “dot plot.”
Jennifer Schonberger | Yahoo Finance