Washington, DC (CNN Business) The Federal Reserve is expected to raise interest rates on Wednesday by three-quarters of a percentage point for the third consecutive time in an aggressive move to tackle white-hot inflation that is plaguing the economy, frustrating consumers and stifling the Biden administration.

Imposing another massive hike would mark the central bank's toughest policy move in its fight against inflation since the 1980s — another period of sky-high prices. It would also likely cause economic pain for millions of American businesses and households by pushing up the cost of borrowing for homes, cars and other loans.

The Fed's anticipated actions would increase the rate that banks charge each other for overnight borrowing to 3-3.25%, the highest since the 2008 global financial crisis.

Federal Reserve Chairman Jerome Powell has acknowledged the economic pain this rapid tightening regime may cause.

"We must keep at it until the job is done," he said at an August central bankers' forum in Jackson Hole, Wyoming. "While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain," he warned.

Investors and economists will be eagerly awaiting clarity on what that "pain" entails. So far, the Fed's series of aggressive rate hikes mean that consumers are currently being charged the highest credit card rates since 1996, mortgage rates have topped 6%, and auto loans are the highest since 2012, noted Greg McBride, chief analyst at Bankrate.

Powell's Jackson Hole comments also preceded new economic data that shows inflation, as measured by the latest Consumer Price Index report, is still elevated at 8.3% for the year ended in August. Moreover, the monthly reading from July to August showed that headline inflation crept up by 0.1%, when most economists expected it to slow. Core CPI, (which strips out volatile components like food and gas) rose twice as much as economists were expecting. That triggered a meltdown on Wall Street.

A larger hike is possible, but unlikely

Some economists even expect the Fed to implement a massive — and historic — full-point rate hike on Wednesday. While that would be a considerable surprise at this point, August inflation data led to calls for the massive move.

Economists at brokerage Nomura Securities, for example, changed their forecast from 75 basis points to 100 basis points last week. Former Treasury Secretary Larry Summers said he doesn't think gradual increases in interest rates have been working to tamp down high prices: The Fed has hiked rates four times already this year, and inflation remains near 40-year highs, he pointed out.

But it's unlikely that the Federal Reserve will raise rates by a full percentage point. The consensus amongst economists and Wall Street analysts is still for a 75 basis point hike, with just 18% projecting the larger hike, according to the CME FedWatch Tool.

WASHINGTON, DC - JULY 27: U.S. Federal Reserve Board Chairman Jerome Powell. (Photo by Drew Angerer/Getty Images)

Bad for markets, good for the Fed

Whichever path the Fed chooses, these are massive rate hikes that would have been unimaginable just a few months ago — and markets don't often take kindly to interest rate hikes, which can negatively impact earnings and stock prices.

That may be what the Fed wants. Some economists think shocking markets is a good thing, and at least one Fed official agrees.

Neel Kashari, president of the Federal Reserve Bank of Minneapolis, said last month that he was happy markets tanked after Powell warned of pain ahead. It meant that people understood the seriousness of the Fed's commitment to getting inflation rates back down to 2%, he said.

The Fed wants "a weaker stock market. They want higher bond yields," former New York Federal Reserve President Bill Dudley told CNN back in May. "The stock market I think is finally catching on to that."

Investors may be hoping for a dovish pivot, but Powell is aiming to end the market's "addiction to Fed easing when stocks decline," said Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence.

What else investors are watching: The Federal Reserve will on Wednesday afternoon also release quarterly forecasts for inflation, the economy, and the future path of interest rates. Investors will study the central bank's projections to try and predict future rate hikes and to gauge how policy officials expect their actions to impact the economy.

"Expect a broad-based uptick in unemployment projections for next year as the Fed further explains what it means by necessary 'pain' for the economy," said Jeffrey Roach, chief economist for LPL Financial.

The Federal Reserve announces its rate hike decision Wednesday at 2 p.m. ET, at the conclusion of its two-day meeting. That will be followed by a press conference with Fed Chair Powell at 2:30 p.m.

Tagging: fed meeting date september 2022, what time is the fed meeting today, when is the fed meeting, federal reserve rate hike, when will interest rates go down, fed rate announcement time.

via: CNN.

The Fed announces its first rate hike since 2018 — here's what it means for your finances. To help stave off rising inflation, the Federal Reserve announced Wednesday a benchmark interest rate hike of 0.25%, the first increase since 2018, in what looks to be the first of many rate hikes to follow.Mar 16, 2022

What to know as the Fed prepares its biggest rate hike in years The Federal Reserve is expected to approve its largest interest rate hike in more than two decades this week. Additional rate increases are likely, as the Fed tries to regain control over inflation.

1. How much 'pain' is the Fed willing to inflict? Wednesday's - AllSides

  • Author: allsides.com
  • Updated: 2022-09-22
  • Rated: 78/100 ⭐ (6383 votes)
  • High rate: 78/100 ⭐
  • Low rate: 56/100 ⭐
  • Summary: How much 'pain' is the Fed willing to inflict? Wednesday's
  • Matched Content: The Federal Reserve is expected to raise interest rates on Wednesday by three-quarters of a Wednesday's rate hike will offer clues.
  • Read more: here
  • Edited by: Hestia Betthel

2. How much 'pain' is the Fed willing to inflict? Wednesday's - Zetabizu

  • Author: zetabizu.com
  • Updated: 2022-09-22
  • Rated: 77/100 ⭐ (4773 votes)
  • High rate: 77/100 ⭐
  • Low rate: 44/100 ⭐
  • Summary: How much 'pain' is the Fed willing to inflict? Wednesday's
  • Matched Content: Wednesday's rate hike will offer clues - CNN It would also likely cause economic pain for millions of American businesses and households 
  • Read more: here
  • Edited by: Fayina Basham

3. How much 'pain' is the Fed willing to inflict? Wednesday's - diramk

  • Author: diramk.com
  • Updated: 2022-09-22
  • Rated: 66/100 ⭐ (1795 votes)
  • High rate: 88/100 ⭐
  • Low rate: 55/100 ⭐
  • Summary: How much 'pain' is the Fed willing to inflict? Wednesday's
  • Matched Content: How much 'pain' is the Fed willing to inflict? Wednesday's rate hike will offer clues · A larger hike is possible, but unlikely · Bad for markets, good for the 
  • Read more: here
  • Edited by: Berty Dovev

4. How much 'pain' is the Fed willing to inflict - Spain News

  • Author: damoyeotv.com
  • Updated: 2022-09-22
  • Rated: 96/100 ⭐ (1915 votes)
  • High rate: 98/100 ⭐
  • Low rate: 55/100 ⭐
  • Summary: How much 'pain' is the Fed willing to inflict
  • Matched Content: How much 'pain' is the Fed willing to inflict? Wednesday's rate hike will offer clues CNNView Full Coverage on Google News Source.
  • Read more: here
  • Edited by: Berny Dougald

5. Latest from The Fed column - MarketWatch

  • Author: marketwatch.com
  • Updated: 2022-09-21
  • Rated: 89/100 ⭐ (6258 votes)
  • High rate: 89/100 ⭐
  • Low rate: 65/100 ⭐
  • Summary: Latest from The Fed column
  • Matched Content: Fed to put a 'firm foot on the brake pedal' this week · The biggest Fed rate hike in 40 years? · The Fed is ready to tell us how much 'pain' the economy will 
  • Read more: here
  • Edited by: Ophelia Chrisse