The Federal Reserve is anticipated to announce its fifth rate increase.
The August inflation figures dashed hopes that the Federal Reserve might scale down its rate increases this month.
In an effort to rein in spiralling inflation, the Fed is now anticipated to raise rates once again on Wednesday, marking the fifth increase this year.
Inflation increased by 0.1% from July to August despite a little cooling year over year, as food and housing costs continued to rise. However, the latest Consumer Price Index
report showed that inflation dropped from June's record high 9.1% reading to an annual rate of 8.3% as a result of falling energy prices, including gas.
According to a Reuters poll of economists, the Fed will likely increase interest rates by another 75 basis points following its two-day meeting on Wednesday.
Powell stated during the July news conference that "we are keenly sensitive to inflation risks
and determined to take the actions necessary to bring inflation to our 2% longer run goal."
The Fed's primary tool to combat excessive inflation is raising interest rates. any time borrowing is more expensive
Many people are concerned that future increases in the cost of borrowing money could cause the economy to contract too much,
throwing us into a recession, which is an economy that is contracting rather than increasing.