Inflation Stays Stubbornly High in August. Here's How Likely a Fed Rate Hike Is Next Week
The Federal Reserve may bump interest rates due to stubbornly high inflation.
Overview
Something strange is currently happening with interest rates and inflation.
The United States Federal Funds Rate -- essentially the price banks charge each other to borrow money overnight -- currently sits at 3.75%. The rate has remained at 3.75% throughout 2026.
Details
For much of 2023 and 2024, the Fed Funds Rate was pegged at 5.5% to battle stubbornly high inflation. As inflation fears eased, the rate was gradually lowered to today's 3.75% level.
Source
Originally published at www.fool.com.
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