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US Market: Fed Rate Hike Looms as Hotter Inflation Clouds Policy Outlook
Higher borrowing costs could follow for mortgages, car loans and credit cards as the central bank tries to slow inflation, analysts said.
- The Federal Reserve is anticipated to increase the target federal funds rate by one-quarter of a percentage point on Wednesday, driven by elevated energy costs and geopolitical tensions with Iran.
- Fed Chairman Kevin Warsh aims to return inflation to the Fed's 2% target after August data showed the annual rate at 3.4%, marking the first rate hike in more than three years.
- Credit card rates above 20% will rise significantly, while 30-year fixed mortgage rates recently exceeded 7% and new car loans could increase by around 12 basis points following the hike.
- President Donald Trump's public advocacy for lower rates creates potential conflict with the Federal Reserve's inflation-fighting strategy as the move proceeds.
- Mark Hamrick, an economic analyst and founder of The Hamrick Brief, notes that while borrowing becomes costlier, savers may capture higher yields on deposits; experts advise comparison shopping to secure favorable rates.
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14 Articles
14 Articles
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·Rio de Janeiro, Brazil
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The Economic TimesReposted by 
Times of India
Times of IndiaUS Market: Fed rate hike looms as hotter inflation clouds policy outlook
The US Federal Reserve is widely expected to raise interest rates by 25 basis points on Wednesday, taking the benchmark rate to 3.75%-4.00%, as stubborn inflation and oil prices above $100 a barrel strengthen the case for tighter monetary policy.
·Mumbai, India
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RealClearMarketsReposted by 
BizToc
BizTocThe Fed May Be On the Verge of a Serious Rate Mistake
Investors on Wall Street and observers of the Federal Reserve in Washington largely expect the central bank to raise interest rates when it meets this week, but some prominent economists are warning t
·Northbrook, United States
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Coverage Details
Total News Sources14
Leaning Left2Leaning Right5Center1Last UpdatedBias Distribution62% Right
Bias Distribution
- 62% of the sources lean Right
62% Right
L 25%
13%
R 62%
Factuality
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