The Federal Reserve is expected to begin making major monetary policy changes this week to address inflation that could potentially cause an economic recession.

From Fox Business. The Federal Reserve is expected to raise interest rates this week for the first time since late 2018, and economists anticipate further hikes throughout the year as policymakers seek to combat soaring inflation.

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While the central bank’s actions are closely monitored by Wall Street, folks on Main Street will be impacted, too.

An increase in interest rates means higher borrowing costs, so consumers and businesses can expect to pay more for car loans, mortgages, and credit card balances. Those additional costs cause shifts in consumer behavior.

John Lonski, president of Thru the Cycle and former chief capital markets economist at Moody’s Analytics, says consumers might not feel the pain of an initial rate increase by the Fed, but they will certainly notice the hikes if they continue through 2022….

But rising interest rates could have a silver lining for Americans overall in the way of bringing inflation under control, which has a direct impact on your wallet….

Share your prayers for our economy in the comments.

(Excerpt from Fox Business. Photo Credit: olieman.eth on Unsplash)