The Federal Reserve on Wednesday is expected to do something it hasn't done in 28 years — increase interest rates by three-quarters of a percentage point. CNBC
Along with the rate increase, here's a quick look at what the Fed also likely will do:Update its outlook for gross domestic product, inflation and unemployment. Economists figure the Fed will decrease its expectations for GDP this year while raising forecasts for inflation and the unemployment rate.
Change the language in its post-meeting statement to reflect current conditions, namely that inflation is running at a faster pace than anticipated, requiring more aggressive actions to contain price increases running at their fastest level since December 1981. Goldman Sachs said new language in the statement could indicate that the rate-setting Federal Open Market Committee"anticipates that raising the target range expeditiously will be appropriate until it sees clear and convincing evidence that inflation is moderating," which the firm said implies"a high bar for reverting to 25bp hikes."