Americans are facing a triple threat to their finances, as U.S. stocks have dipped into a bear market. The Federal Reserve is expected to increase interest rates Wednesday, and, some economists say a recession is likely.
The White House says the pair will discuss the state of the U.S. and global economy along with inflation, described as Biden’s “top economic priority.”
The Federal Reserve intensified its drive to curb the worst inflation in 40 years by raising its benchmark short-term interest rate by a sizable half-percentage point.
Consumer News: Slight relief at the gas pump in SC, Federal Reserve raises interest rates
For the first time since 2018, the Federal Reserve is raising interest rates by a quarter-percentage point. The Fed also hinted more increases are ahead this year, as it works to tame soaring inflation. The move comes despite the growing economic uncertainty in the U.S. caused by the war in Ukraine.
Consumer News: Airlines seeing unprecedented demand, Federal Reserve announces rate hike
The Federal Reserve launched a high-risk effort Wednesday to tame the worst inflation since the 1970s, raising its benchmark short-term interest rate and signaling potentially up to seven rate hikes this year.
The Federal Reserve will quicken the pace at which it’s pulling back its support for the post-pandemic U.S. economy as inflation surges, and it expects to raise interest rates three times next year.
Across the United States, first time jobless benefits claims shot up for the first time in nearly two months. The rate of new unemployment claims had been setting new pandemic-era lows each week since the beginning of May.
The Federal Reserve is keeping interest rates at rock-bottom levels.
