The Daily Money: Fed expected to hike rates again today. What it means for you.

Even though this may be the central bank's final rate bump of the year, it could carry consequences for consumers.

Read in browser Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Wed May 3 2023 Bailey Schulz | Money Reporter @bailey_schulz Good morning, Daily Money readers. It's Bailey Schulz here to bring you the day's top stories. The Federal Reserve is expected to raise its key short-term interest rate one more time this year with a 25 basis point hike to help curb inflation. The Fed will reveal  its decision at 2 p.m.   Even though this may be the central bank's final rate bump of the year, it could carry consequences for consumers.   Federal Reserve Chair Jerome Powell speaks during a news conference Wednesday, Dec. 14, 2022, at the Federal Reserve Board Building, in Washington. Jacquelyn Martin, AP How the Fed's rate hike could affect you Climbing interest rates have already tested some borrowers' ability to repay their debts. Another quarter-point hike would cost consumers an additional $1.7 billion over the next 12 months, bringing the annual cost of the Fed's recent rate hikes to a total of more than $33 billion, WalletHub estimates.  The average APR on a new credit card offer – already its highest in decades at 23.84% – is expected to go even higher if interest rates are raised, making it harder to pay off credit card debt.    But there's good news for homebuyers. Since this week's hike is expected, it should not impact mortgage rates. Confirmation of a pause could actually lead to some mortgage rate relief.   📰 More stories you shouldn't miss 📰  • Tuesday Morning going out of business: Chain slashes prices as it closes doors for good • Subway is exploring a sale. It hopes a $5B debt plan will sweeten the deal, per report. • Jenny Craig warns of mass layoffs, closing some of company's 500 weight-loss centers: Reports • Behind the frosted glass doors of airline lounges, is it really worth it? 🍔 Today's Menu 🍔 On today's menu: a specialty Ethiopian coffee from The Weeknd. The musician and son of Ethiopian immigrants has partnered with Blue Bottle Coffee on Samra Origins, a new brand of coffee products named after The Weeknd's mother. The brand, which honors his Ethiopian roots and the culture of the country long considered the birthplace of coffee, debuts on May 9.   About The Daily Money Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. Fed expected to raise interest rates again. Follow for live updates The Fed continues to push the federal funds rate higher to curb inflation, which has slowed but still poses an economic threat. READ MORE Advertisement Fed rate hikes seen near peak. What this means for you and stocks. The Federal Reserve may raise interest rates for the 10th time in a row and then, pause. Americans already reeling, though, may not feel relief. READ MORE Will the spring housing market go cold if there's a Fed rate hike? The Fed will almost certainly raise the Federal funds rate, say experts. How will that affect the housing market? READ MORE The Weeknd brews up a new project: his own coffee brand The Weeknd teamed with Blue Bottle Coffee of Oakland, California on a new Ethiopian coffee named Samra Origins, paying tribute to his parents. READ MORE Report: Subway looking to secure $10 billion-plus sale with debt plan Subway CEO John Chidsey said he aims to have a deal signed by early June. READ MORE How to shop Tuesday Morning going out of business sale Is Tuesday Morning closing all its stores? Yes. Items are marked up to 30% off the lowest ticketed price. Gift cards will be honored through May 13. READ MORE Jenny Craig warns of mass layoffs, closing some of 500 weight-loss centers According to its website, the company has about 500 Jenny Craig weight-loss centers in the United States and Canada. READ MORE Is airport lounge access worth it? Our airline reporter says: meh. Airport lounges are getting crowded as more travelers take advantage of their perks. Here's what goes on inside and what to consider before joining. READ MORE He collected over 80,000 trading cards. Now they're up for sale. For someone willing to doing their research, there undoubtedly are some gems amidst 88,500 cards. READ MORE How do I resolve constant bickering between co-workers? Ask HR Constant bickering between co-workers may require mediation to resolve their differences. Challenge them to reach a compromise to work things out. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •   Manage Newsletters  •  Terms of Service  •   Privacy Policy/Your California Privacy Rights  •  Privacy Notice  •   Do Not Sell My Info/Cookie Policy  •  Feedback