The Federal Open Market Committee will meet in a few weeks. Here’s why that’s important and why you need to know about it: it’s part of the Federal Reserve and determines the federal funds rate.
The prediction right now is that we could see yet another rate hike to fight inflation at the end of this month. CME Group has a fed watch tracker and this week they increased their prediction to 82%, according to CNBC. This means that small business owners would see higher interest rates when they borrow from banks. It also means that banks will more than likely tighten their lending requirements.
For everyday Americans, the rate increase means home, car, and education loans could be affected. Credit card rates could also increase as well. When corporations and big businesses have higher borrowing costs, it also means they’ll more than likely respond through hiring freezes or layoffs. We’ve already seen that with Tesla, Netflix, and now Google laying off workers. More economic pain is ahead as the fed continues its attempts to cool inflation.
Click to listen to the AURN News report from Jamie Jackson:
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