Federal Reserve to meet today on ways to tackle inflation
WASHINGTON (KDKA) - To tackle the soaring inflation, which we haven't seen in 40 years, the Fed could lift rates by 0.75 percent.
That would come after a 0.25 percent hike in March and a 0.5 move in May.
If the Fed does decide on a three-quarter point boost, it would be the first hike rate of that size since 1994. The Consumer Price Index says that the cost of goods and services increased 8.6 percent in May. Food and housing costs continue to surge, and gas prices are at an all-time high.
"Jobs are back, but prices are still too high. COVID is down, but gas prices are up. Republicans in Congress are doing everything they can to stop my plans to bring down costs on ordinary families. That's why my plan is not finished and why the results aren't finished either," said President Joe Biden.
Some analysts are expecting the Central Bank to have another increase in July, followed by more hikes in September and November.
RELATED: Democrat Josh Shapiro calls Republican Doug Mastriano 'dangerous'
Meanwhile, in an exclusive interview, KDKA spoke with Attorney General and candidate for Governor, Josh Shapiro. He spoke about cases of price-gouging and even laid out a plan that he believes would help millions of drivers across Pennsylvania. His plan, which requires legislative approval, would give every vehicle owner $250 for every vehicle they own rather than reduce the gasoline tax used to fund both bridge and highway construction and the state police.
"If I were Governor, right now I would put money back in peoples' pockets to offset the cost. I'd send every single with a car 250 bucks to help offset the fuel prices," said Attorney General and candidate for Governor, Josh Shapiro.
As for the rate increase, the Fed is expected to announce its decision by 2 p.m. today.
This could mean credit card debt will become more expensive and mortgage rates could rise.
