Despite the ongoing issues with Ukraine and Russia, the Fed is expected to raise interest rates on Wednesday to try and contain growing inflation. New data indicates that inflation has now hit double digits. In February, the US producer price index, which tracks what America’s producers get paid for their goods and services on average over time, rose 10% for a 12-month period. Many Americans are worried about the ramifications the upcoming rate hikes will have on their finances. CNBC has crafted a breakdown of how it could impact you.
Here’s a breakdown of how the Fed’s expected rate hike will impact your wallet
The Federal Reserve is expected to raise rates Wednesday as they look to contain soaring inflation.
The first quarter-point increase in the federal funds rate in three years will likely lay the groundwork for additional hikes to follow.
“The cumulative effect of rate hikes is what is really going to have an impact on the economy and household budgets,” said Greg McBride, Bankrate.com’s chief financial analyst.
Typically, as borrowing costs rise, consumers will spend less, ultimately cooling the pressure on prices. But if you’re concerned about what this means for your own credit card debt, auto loan, mortgage rate and student loan tab, here’s a breakdown of what may happen.
Read the full story, here.
Business Insider/Harry Robertson
US futures fall as Ukraine conflict and Federal Reserve worry investors, while oil prices tumble another 5%
US futures fell on Tuesday as the Russia-Ukraine conflict clouded the global outlook and investors braced for the Federal Reserve to start raising interest rates, while oil prices continued to slide.
S&P 500 futures were 0.33% lower at 6.16 a.m. ET, after the benchmark stock index fell 0.74% Monday.
Nasdaq 100 futures were 0.19% lower, after the index closed in a so-called bear market — a drop of 20% or more from recent highs — the previous day. Dow Jones futures were 0.38% lower.
European stocks slid as investors weighed up the risks of the Ukraine war to the area’s economy. The continent-wide Stoxx 600 index was 1.49% lower in early trading.
You can read the full article, here.
CNN Business/Anneken Tappe
Key inflation measure hits double digits for February
Prices kept rising in February as another key inflation gauge soared and hit double digits.
The US producer price index, which tracks what America’s producers get paid for their goods and services on average over time, rose 10% for the 12-month period ended in February, not adjusted for seasonal swings, according to the Bureau of Labor Statistics.
That was a slightly faster pace of price increases than economists had predicted.
For January, 12-month price inflation was also revised up to 10%, from 9.7% initially reported, the first time the index hit double digits since the data series began in 2010.
You can read the full story, here.