WASHINGTON, D.C. – The Federal Reserve is expected to increase interest rates when it meets today. It’s kept them low to support job growth and the economy. The hope now is to curb inflation.
The Fed has kept rates at zero since the pandemic started. That’s helped the economy by helping businesses and consumers borrow and spend money.
That ability to spend has boosted demand for big-ticket items, but now supply is struggling to keep up.
Add to that rising energy costs, and new numbers show a seven-point-nine percent increase in the consumer price index year-over-year.
Inflation is so bad, some experts worry about a recession. The hope is that an interest rate increase will lower the cost of living for average Americans.
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