News The Balance Today: News You Need To Know on Nov. 1, 2022 What Happens If the Fed Hikes Rates Tomorrow? By Kristin Myers Kristin Myers Instagram Twitter Website Kristin Myers is an award-winning journalist and Editor-in-Chief of The Balance. She previously anchored Yahoo Finance Live, where she also created and hosted "A Time for Change,” a weekly program that explores race, diversity, and inclusion in the world of business, finance, and politics. Kristin holds a master of arts in international journalism from Cardiff University, and a bachelor of arts in English from the University of Pennsylvania. learn about our editorial policies Updated on November 1, 2022 Fact checked by Hilarey Gould Fact checked by Hilarey Gould Twitter Website Hilarey Gould has spent 10+ years in the digital media space, where she's developed a passion for helping people understand economics, saving, investing, credit card perks, mortgage rates, and more. Hilarey is the editorial director for The Balance and has held full-time and freelance roles at a variety of financial media companies including realtor.com, Bankrate, and SmartAsset. She has a master's in journalism from the University of Missouri, and a bachelor's in journalism and professional writing from The College of New Jersey (TCNJ). learn about our editorial policies Share Tweet Pin Email Photo: Dimensions / Getty Images In another sign of strength from the nation’s labor market, job openings in the U.S. climbed to 10.7 million by the end of September, up from 10.3 million in August, according to the Bureau of Labor Statistics’ most recent Job Openings and Labor Turnover Survey (JOLTS) released this morning. The largest increases were in hospitality and food services, with a gain of 215,000 positions, followed by the health care and social assistance industry, which added 115,000 new roles. Employers are still looking for workers and the job market remains relatively tight, and that reinforces the likelihood the Federal Reserve will keep aggressively hiking interest rates to curb inflation. It’s largely expected that the Fed will hand us an interest rate hike of 75 basis points this week, but what comes after? That’s what we will all be focused on tomorrow when Fed Chair Jerome Powell gives his speech and answers questions from reporters. While we should anticipate that interest rates will jump, the future decisions from the central bank will be important to us all. Why? Well, until this point, the economy has remained pretty resilient amid increasing pressure from the Fed. While average rates on 30-year fixed-rate mortgages have soared above 7%, many people still want to buy homes, keeping the housing market hot. Inflation remains persistently, and stubbornly, high, and the high interest rates meant to slow down economic growth haven’t made a big dent in the jobs market as employers continue to hire and unemployment remains relatively low. So the question remains: How much will the Fed put us through to bring down inflation? It’s a question that will impact us all, as the higher rates go, the more likely a recession becomes. And as the Fed continues to raise rates, we’ll have to shell out more money to pay off our credit card debt, secure new home loans, and more. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Bureau of Labor Statistics. "Table A. Job Openings, Hires, and Total Separations by Industry, Seasonally Adjusted." Bureau of Labor Statistics. "Job Openings and Labor Turnover Summary." CME Group. "CME FedWatch Tool." Freddie Mac. "Mortgage Rates."