Your Money Matters: Fed Expected To Lower Interest Rates As Inflation Nears Target

Inflation and interest rates are set to dominate the financial world this coming week, and they will impact your everyday life.

The Federal Reserve is meeting this week, and they are expected to lower the benchmark interest rate.

Two indicators suggest this: Chair Jerome Powell has already said the time has come to lower rates, and inflation is hovering around his target of 2%.

Prices increased by 0.2% month-over-month, with an annual rate close to 2.5%.

What are the reasons? Gasoline prices have dropped 0.6% year-over-year. Housing remains high, with a 0.5% increase. Consumers continue to cut back on dining out, as restaurant prices have risen by 0.3%. There's some relief at the car lot, as used car prices have dropped 1%.

Remember, if the Fed lowers interest rates, it can affect everything from mortgages and car loans to credit card debt.