Fed to Raise Interest Rates by Half a Point on Wednesday

Financial markets expect the Federal Reserve to raise interest rates by half a point on Wednesday, continuing its aggressive campaign to tame inflation.

The hike would be the fifth straight increase of at least half a point and would take the central bank's benchmark rate to a range of 3.75% to 4%.

The Fed is raising rates in an effort to slow economic growth and reduce inflation, which is at its highest level in four decades.

The Fed's rate hikes have already begun to have an impact on the economy. Mortgage rates have risen sharply, and businesses are starting to slow their hiring.

However, the Fed is likely to continue raising rates until it sees convincing evidence that inflation is under control.

The Fed's rate hike decision will be closely watched by financial markets. A larger-than-expected hike could trigger a sell-off in stocks and bonds.

The Fed's decision will also have implications for the economy. A half-point hike is likely to further slow economic growth and could increase the risk of a recession.

However, the Fed believes that raising rates is necessary to bring inflation under control.

The Fed's next meeting is scheduled for November 1-2. The central bank is expected to announce its decision on interest rates at the end of the meeting.