How much “pain”? Fed Announces More Upcoming Rate Hikes | Company

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WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell bluntly warned in a speech last month that the Fed’s drive to rein in inflation by aggressively raising interest rates “would bring pain.” . On Wednesday, Americans might get a better idea of ​​just how much pain will be in store.

The Fed is expected to raise its short-term policy rate by a substantial three-quarters point for the third consecutive time at its last meeting. Another such big hike would take its benchmark rate – which affects many consumer and business loans – to a range of 3% to 3.25%, the highest level in 14 years.

In a further sign of the Fed’s growing concern over inflation, it will also likely signal that it plans to raise rates much higher by the end of the year than it expected a while ago. three months – and to keep them higher for a longer period.

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