September 21, 2022: Fed raises interest rates by three-quarters of a percentage point

The Federal Reserve is expected to raise interest rates on Wednesday by three-quarters of a percentage point for the third consecutive time in an aggressive move to tackle white-hot inflation that is plaguing the economy, frustrating consumers and stifling the Biden administration.

Imposing another massive hike would mark the central bank's toughest policy move in its fight against inflation since the 1980s — another period of sky-high prices. It would also likely cause economic pain for millions of American businesses and households by pushing up the cost of borrowing for homes, cars and other loans.

The Fed's anticipated actions would increase the rate that banks charge each other for overnight borrowing to 3-3.25%, the highest since the 2008 global financial crisis.

Federal Reserve Chairman Jerome Powell has acknowledged the economic pain this rapid tightening regime may cause.

Investors and economists will be eagerly awaiting clarity on what that "pain" entails. 

Read more

The historic streak of falling gasoline prices is over.

After sinking every day for more than three months, US gas prices edged higher -- by a penny -- to $3.68 a gallon, on average Wednesday, according to AAA.

That ends 98 consecutive days of falling pump prices, the second-longest such streak on record going back to 2005.

The last time the national average price for gasoline rose was June 14, when it hit a record of $5.02. Prices fell every day since then and Thursday would have marked the 100th straight day of declines.

If gas prices begin to rise that could undermine the Biden administration and the Fed's efforts to keep inflation in check. Falling gas prices are the sole reason America's consumer prices have remained steady overall during the past few months after rising sharply in 2021 and the beginning part of this year.

Read more