U.S. Central Bank Expected to Increase Interest Rate
The U.S. Central Bank is expected to increase it’s benchmark interest rate by three-quarters of a percentage point today marking the biggest hike since 1994. The announcement follows the Fed’s decision to raise its rate by half a percentage point in May which at the time marked the biggest increase in 22 years. Investors are expecting the Fed to raise its target to near 4% by the end of the year. Inflation has prices on the rise, with groceries increasing 11.9% over the past 12 months, housing costs rising 5.5% and used car prices up by 16.1%. The typical U.S. household is now spending $460 more every month than it did last year to purchase the same goods and services and for the first time ever, a gallon of gas is now an average of $5 according to AAA.