Federal Reserve with third .75% rate hike this year

SAN DIEGO (KUSI) – The Fed raised interest rates Wednesday, Sept. 21 by 0.75% for the third consecutive increase since the start of the year.

With inflation at its highest in four decades, the Fed has been pushed to action. By raising interest rates, they expect to slow the economy and lower prices. However, this risks a decrease in overall investments which could adversely affect the economy. Already the stock market has dropped in anticipation of the announced rate hike.

The Fed says they plan to return inflation to an average 2% by allowing for a below-trend growth period and by softening labor market conditions.

Sully, Co Host of “On The Air with Sully and Little Tommy”, joined KUSI’s Lauren Phinney to discuss interest rate hikes and how they are expected to impact Californians.

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