News The Balance Today: News You Need To Know on Sept. 20, 2022 The Fed’s Cure for Inflation Could Hurt Your Wallet By Diccon Hyatt Published on September 20, 2022 Photo: AsiaVision / Getty Images The Fed is stepping up its battle against inflation—and the fight could impact your wallet in more ways than one. Today, officials at the Federal Reserve are meeting to discuss how much they’ll hike the central bank’s benchmark interest rate as part of their ongoing campaign to control inflation. They’ll announce what they decide tomorrow afternoon, and most experts are looking for another 75 basis-point jump (a hefty chunk by historical standards) but an aggressive 100-point hike isn’t out of the question. A higher fed funds rate means it’s more expensive for banks to borrow money, so they’ll likely charge you more interest on your credit cards and loans. Also, if you’re looking to buy a home, the fed funds rate indirectly affects your mortgage rates, which are already on a sharp upward trajectory. Businesses are impacted too, since higher interest rates make it harder to borrow money, expand their operations, and hire new workers. With the Fed’s higher rates creating such a drag on the economy, it’s little wonder that many economists see a recession hitting as soon as next year. This article originally appeared in 'The Balance Today' newsletter. You can get 'The Balance Today' delivered to your inbox daily, just sign up here. 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. Wells Fargo. “September 16, 2022: Weekly Economic & Financial Commentary.” ING. “Why We Expect a ‘Hawkish’ 75bp Hike From the Fed.”