How the Fed could do a smaller rate hike and still upset markets

The Federal Reserve is expected to respond to persistently high inflation by hiking interest rates half a point on Wednesday. That will mark its seventh and final painful hike of the year, albeit a smaller one than the last four historically high three-quarter point increases.

​The Federal Reserve is expected to respond to persistently high inflation by hiking interest rates half a point on Wednesday. That will mark its seventh and final painful hike of the year, albeit a smaller one than the last four historically high three-quarter point increases.