Federal Reserve expected to announce 3rd interest rate hike

In an effort to combat inflation, the Federal Reserve is expected to hike interest rates up another 0.75%- its 5th interest rate hike of 2022.
3:21 | 09/21/22

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:

{{nextVideo.title}}

{{nextVideo.description}}

Skip to this video now

Now Playing:

{{currentVideo.title}}

Comments
Related Extras
Related Videos
Video Transcript
Transcript for Federal Reserve expected to announce 3rd interest rate hike
 FEDERAL RESERVE IS EXPECTED TO ANNOUNCE ANOTHER INTEREST RATE HIKE TO SLOW DOWN INFLATION. THE THIRD INCREASE SINCE JUNE, THIS COMES AS PRICES ARE SHOWING NO SIGN OF FALLING, DEPENDING WHERE YOU LOOK GAS PRICES, HAVE THAT'S ANOTHER STORY FOR MORE ON WHAT THIS ALL MEANS, LET'S BRING IN ABC NEWS ALEXIS, RIGHT OFF THE BAT, I GUESS WE WILL START WITH THE BASICS WHAT ARE WE EXPECTING? WHAT IS HAPPENING? >> ANOTHER BIG INTEREST RATE HIKE, FROM THE FEDERAL RESERVE, IN JUST A FEW HOURS, WE ARE EXPECTING IT TO BE THAT THREE QUARTERS OF A PERCENT. SOME WALL STREET ANALYSTS, COULD SEE A FULL PERCENTAGE POINT RISE, AS THE FED RAMPS UP ITS FIGHT AGAINST INFLATION. WE KNOW THAT IT HAS NOT HELPED MUCH THIS WOULD BE THE FIFTH INTEREST RATE HIKE OF 2022, WE STILL HAVE INFLATION, AT 8.3%. YOU ARE RIGHT TO CALL OUT GAS PRICES. WE HAVE HIGHER PRICES FOR FOOD, HIGHER PRICES FOR RENT, AND JUST ABOUT EVERYTHING ELSE. >> WHAT DOES THIS MEAN? I WANT YOU TO LAY THIS OUT IN A BROAD SENSE, WE ARE SHOWING PICTURES OF GAS GOING IN THE CARS, I DROVE PAST THAT BY -- GAS STATION TO 3:19 PEOPLE SEE THAT AND THEY SAY, I'M SAVING DOLLARS ON A GALLON OF GASOLINE. THEN THE INTEREST RATE HIKES, THAT AFFECTS YOUR CREDIT CARD, MORTGAGES, EVERYTHING ELSE. ARE WE THINKING IT'S GETTING BETTER OR WORSE? >> IT DEPENDS ON WHAT YOU ARE SHOPPING FOR. IF YOU ARE HARD-PRESSED TO NOT FIND INFLATION SOMEWHERE IN YOUR HOUSEHOLD BUDGET, HERE ARE A FEW WAYS THAT TODAY'S INTEREST RATE HIKE, WILL AFFECT FOLKS. I WILL GET HER HISTORY RATES ON CREDIT CARDS, IF YOU CARRY BALLOTS, IF YOU LOOK TO BUY A CAR, YOU CAN HAVE AN AUTO LOAN, YOU'LL BE PAYING HOMAGE LOANS, SMALL BUSINESSES, LOANS MORTGAGE RATES. ALSO GOING UP ON THE FLIP SIDE. A LITTLE BIT OF A BRIGHT SPOT. YOU'RE GETTING HIGHER INTEREST -- THOSE ARE NOT KEEPING UP FOR INFLATION. AT LEAST YOU'RE MAKING A LITTLE MORE MONEY THAN YOU HAVE BEEN. >> PEOPLE WHO DON'T FOLLOW IT AS CLOSE AS YOU, IT'S THE FIFT? >> FIFTH OF THE YEAR. >> WHAT IS THE FED TRYING TO D? IS IT WORKING? >> THAT'S THE BIG QUESTION MARK AND WHAT THEY'RE TRYING TO DO, IS SLOW THE ECONOMY, CHOKE OFF DEMAND, AND PUSH PRICES LOWER. THAT EVEN MEANS PUSHING THE ECONOMY INTO A MILD AND SHORT RECESSION HOW MUCH HIGHER WILL INTEREST RATES GO? I THINK THREE QUARTER OF A PERCENT RISE RATE, THEY WANT TO HEAR FROM -- WHO WILL BE SPEAKING THIS AFTERNOON TO 30. WE WILL BE CARRYING THAT. AND TO SEE WHETHER OR NOT, INTEREST RATES ARE GOING TO BE HIGHER FOR MUCH LONGER? >> HE KNOWS HIS WORDS WILL AFFECT THE MARKET WHAT DO YOU EXPECT TO SEE? WE'VE SEEN DOWN DAYS. >> IT'S BEEN A ROUGH YEAR FOR THE MARKET. PAST FEW DAYS FOR SURE I THINK AGAIN, IF THE MARKET SEES SOME LIGHT AT THE END OF THE TUNNEL, AND BELIEFS IN THESE CYCLE OF INTEREST RATE HEIGHTS, AND THAT THEY'RE IN UNION AND, THE FEDS WILL BELIEVE THEY WILL START IMPACTING INFLATION IN A GOOD WAY, YOU COULD SEE THE MARKET RALLY. >> I DON'T HAVE ANY MORE FINGERS AND TOES TO

This transcript has been automatically generated and may not be 100% accurate.

{"duration":"3:21","description":"In an effort to combat inflation, the Federal Reserve is expected to hike interest rates up another 0.75%- its 5th interest rate hike of 2022.","mediaType":"default","section":"ABCNews/Business","id":"90273537","title":"Federal Reserve expected to announce 3rd interest rate hike","url":"/Business/video/federal-reserve-expected-announce-3rd-interest-rate-hike-90273537"}