Fed Chair Jerome Powell is trying to lift federal fund rates in an attempt to slow the pace of inflation.
Russia’s invasion of Ukraine and China’s round of virus lockdowns are the main reasons behind the disturbance in supply chains, creating scarcity that leads to inflation in rates.
Powell will be announcing a 50 basis-point increase in interest rates on Wednesday—the biggest rate hike in two decades.
But the hike is expected to pull off a safe increase to bring a neutral ground for inflation, without disrupting the economy.
