How steep fed rate hikes affect your finances

NEW YORK (AP) — Mortgage rates continue to jump, home sales slump and credit cards and auto loans increase. Savings rates are slightly juicier, though. 

As the Federal Reserve steadily increases interest rates, many economists say they fear that a recession remains inevitable in the coming months — and with it, job losses that could cause hardship for households already hurt worst by inflation. 

On Wednesday afternoon, the Federal Reserve is expected to raise its key short-term rate by three-quarters of a point for a fourth straight time, even as its previous rate increases are being felt by households at all income levels. This would be the sixth rate raise in a row, total. 

The Fed’s latest move would raise its benchmark rate to a range of 3.75% to 4%, the highest level in 14 years. Its steady rate increases have already made it increasingly costly for consumers and businesses to borrow — for homes, autos and other purchases. And more hikes are almost surely coming. Fed officials are expected to signal Wednesday that their benchmark rate could reach as high as 4.6% by early next year.