Fed expected to hike interest rates for first time since 2023. See what it means for your money.

Borrowing is likely to get more expensive for Americans, and soon, according to economists.The Federal Reserve is expected to raise its benchmark interest rate on Wednesday for the first time in more than three years as the central bank battles stubborn inflation fueled by high energy prices. Some Wall Street forecasters also pencil in one or two additional rate hikes over the next several months.Despite President Trump's repeated calls for lower interest rates, many economists predict that Fed officials will raise the federal funds rate by 0.25 percentage points at its Sept. 16 meeting. Inflation remains well above the central bank's 2% annual target, with the Consumer Price Index rising at an annual pace of 3.4% in August.Interest rate hikes are the Fed's most potent tool for quashing inflation because businesses and consumers respond by pulling back on spending, cooling the economy and tempering price increases as demand slows.