Fed to discuss increasing interest rates

The Federal Open Market Committee is kicking off a two day meeting Tuesday, Nov 1, where officials will try to manage the worst inflation the U.S. has seen in decades.

The Federal Reserve has been expected to increase interest rates by three quarters of a point, which would be it’s fourth straight increase.

There has been recent speculation the increase could be only half a point. Those increases make it more expensive to borrow money for things like cars and homes, but there is concern continued increases could hurt the economy.

This comes as the Biden administration says a recent GDP report showed job growth, and a potential decrease in prices.

“Some slowing in the pace of inflation, which was also a welcome sign,” White House Council of Economic Advisors Member Jared Burnstein said. “Still too elevated no question. But some cracks in that wall, moving in the right direction.”

The actual rate hike would take place in December, but the Fed’s decision would likely impact markets immediately.