Interest rate hike expected as Federal Reserve officials gather in Washington this week

Investors and economists are bracing for another interest rate hike this week as central bank officials gather in Washington for their July meeting. Their two-day gathering July 26 and 27 comes as the Federal Reserve works to combat soaring inflation that has left families across the country struggling to make ends meet.

"Some Fed officials left a 100bp hike on the table after the firm CPI report last week, but a pullback in inflation expectations seems to have persuaded the Committee to stick to its original plan," economists from Goldman Sachs said in a note previewing the meeting. They also said financial conditions have"already tightened enough to put the economy on a sufficiently low growth trajectory.

Economists and investors will be keeping a close eye to see what guidance Federal Reserve Chairman Jerome Powell will give about future meetings. In a note Monday, Deutsche Bank said its economics team expects hikes of 50 basis points in September and November before a 25 basis points hike in December.

"Consumers should look to low-rate credit card balance transfer offers and doing so with urgency to insulate from further rate increases and make headway on paying down debt," McBride said."Ask your lender if fixing the interest rate on your outstanding home equity balance is an option."

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