Fed rate hike expected on Wednesday. See what it means for your money.

The Federal Reserve is set to raise its benchmark interest rate by 0.25 percentage points on September 16, marking the first increase in over three years. This move aims to combat persistent inflation, which currently stands at 3.4% in August, above the central bank's 2% target. Economists predict that additional rate hikes may follow, potentially reaching a 4% target range by the end of the year.

The Fed's decision comes amid ongoing concerns over high energy prices, driven by the Iran war and record diesel and gasoline prices. While higher interest rates could increase borrowing costs for consumers, particularly those with credit card debt, they also promise better returns for savers. Investors should brace for market volatility, as recent market movements have already factored in multiple rate hikes.