(WXYZ) — Wall Street is bracing for another interest rate hike from the Federal Reserve and it could be the central bank's 8th interest rate hike in a row.
This means borrowing costs could be going even higher this year, but with inflation starting to cool down a bit, analysts say they're predicting that this hike will be just a quarter of a point.
The Federal Reserve started hiking interest rates last summer in an effort to slow down an overheated economy and bring down historically high prices, but this interest rate hike will deepen the pain for millions of Americans and businesses who fear a possible recession. But Jan Hatzius with Goldman Sachs says that's unlikely.
"We don't expect the recession. Our baseline view is that we're going through a period of below-trend growth," Hatzius said.
The reason this interest rate hike matters is because it will push the cost of borrowing even higher. Everything from credit cards to buying a new car and mortgage rates will be impacted.
In January of 2022, mortgage rates were at 3.22%. Now they sit at 6.13%.
Meanwhile, the markets are still holding on to a little hope that rate cuts could come later in the year.
"If you're out there and you're living paycheck to paycheck, the best I can offer you here is that the worst is behind us," RSM Chief Economist Joe Brusuelas said.
