Federal Reserve is expected to announce another interest rate hike it's eight one since last March we anticipate this increase will be the smallest since the Central Bank began pushing rates higher about a year ago now Federal Reserve chairman Jerome Powell will deliver remarks about the state of the economy later today if more analysis on that.
Story is CBS news reporter Sarah uwell Weiss um Sarah what can we expect from that fed today yes so what we're expecting is another hike announcement of a quarter of a percentage point which makes it as you mentioned the smallest hike we've seen since last March but the eighth one in.
The row and that adds to the total federal funds rate that brings the federal funds rate to between four and a half percentage points and four and three quarters percentage points but there are several questions that are really interesting and we're hoping to get answers from the Federal Reserve chairman today or at least more details.
On where this could go this year and that includes how many hikes will we see further down the road in 2023 but also when we might be able to start seeing that federal funds rate coming down again when they made their projections in December they didn't expect any Cuts in that rate until 2024 but we could get more details on where they're thinking.
As they start to navigate this year and the financial layout of this year of course they are working to combat 40-year High inflation but there have been signs that inflation is easing so it depends on what they're thinking in terms of keeping their foot on the pedal and not laying up yet and also the idea that they also don't want to push the.
United States into a recession with their efforts yeah there's one thing about drone pal is he doesn't want to catch anyone off guard he broadcasts months in advance what he's going to do and so we kind of expected this we knew that that you know interest rate's going to go up but because we saw inflation kind of cooling the expectation was we.
Would see a rate hike that wasn't as high as the previous ones that being said what sort of impact do we think something like this could have on the economy you know it's really just an additional increase in the interest rate that adds to borrowing costs for Americans of course that is an idea that if Americans.
Are uh charged more for borrowing they'll be spending less and that will help cool this inflation overall but last year we did see record high credit card interest rates so that can continue to climb this coming year there's record high interest for borrowing in terms of different types of loans that we saw over last.
Year that would continue into this year so those are th ings to keep in mind if you have a high amount of credit card debt keep paying that off as quickly as possible because that money adds up in terms of Interest there's also options to transfer your debt to another perhaps interest-free credit card offer that'll have zero percent interest for a year or.
So so that you can continue to pay down those numbers without adding to your total bill moving forward and a lot of financial experts are continuing after they started saying people should do this last year continuing that this year as well yeah and it's you know a cautionary tale of why you should be careful if you're.
Carrying debt if it's avoidable and you don't need to pay these fees please avoid it because these changes can happen anytime but that said Sarah this will be what the eighth hike since they began tackling this about a year ago and we anticipate the hike may be smaller so does that kind of encourage this sense that maybe this constant rate hike cycle.
May be coming to an end yeah so the federal funds rate is at its highest rate since 2007. and last year we saw the fastest increase in that rate since the 1980s so the ideas assist slowly starting to slow this year a couple different uh looks at this are the Goldman Sachs has their uh projections and they're estimating that.
This could be the first of three separate quarter percent hikes that we see in terms of meetings the one today would be announced they also expect another one in March and then at the meeting in May so they're expecting three more hikes this year but other projections are kind of different in terms of how long those will go on.
Though a lot of the the analysis expects us continue to to be lower than what we saw last year or I should say all of them right now are expecting that to be lower than it was last year that being said we also have a number of different Financial points that we need to keep an eye on this Friday is the latest jobs report we've seen a number of jobs.
Reports that have shown that the labor market remains strong though the number of jobs being added has gone down there is Cooling and that is actually a good sign for the FED as they look at this in terms of what they're going to do moving forward so that's one piece of data to keep in mind we'll also have the job openings numbers coming out today so.
That is something that the FED will be looking at moving forward as well we'll see what he does we're still a long way from the two percent inflation that Jerome Powell says he's comfortable with I don't know if we'll ever get there anytime soon anyways uh Sarah thank you very much thanks Sarah
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A fourteener eh?