Significant Rate Hike Expected as Inflation Continues to Rise
As the Federal Open Market Committee is set to meet on September 21, 2022, many economists are predicting another 75-basis point rate hike. This would mark the third consecutive significant hike in as many meetings. There are still two more meetings this year in November and December and we could see even more hikes if inflation continues to rise.
Last month it was reported that the annual inflation rate in the United States had eased for the second straight month dropping from 8.5% in July to 8.3% in August but that was still above market forecasts causing shockwaves through the financial sector.
As you can see from the chart above, Energy Costs have increased 23.8% from 2021, Food Costs have increased by 11.4%, and All items less food and energy have increased by 6.3%.
For more information, please reach out to the Professionals at The Center for Financial, Legal & Tax Planning, Inc., at (618) 997-3436.