Pivotal week ahead for economy: Rate hike expected, gas prices up in Raleigh

This is a pivotal week for the U.S. economy and your finances.

The Federal Reserve could be announcing yet another interest rate hike -- the last for this cycle. This is all part of the effort to slow down inflation.

Gas prices are always a good indicator for what’s happening with the economy, and we are seeing prices rising at the pump again.

In the past month, the average price per gallon has gone up 13 cents in Raleigh.

Right now, the average in North Carolina is $3.38 per gallon. That’s according to the new numbers AAA just released Tuesday morning.

The gas prices will be a factor when the Federal Reserve begins its two-day meeting Tuesday.

NC State Economist Mike Walden said he expects the Fed will issue another rate hike, but that would be the last one for the foreseeable future.

He said even though inflation is cooling down, prices are still up.

"I would tell people, drivers, not to panic," Walden said. "I don't think we're headed to $4 a gallon. In fact, I think for most of the rest of the year we're probably going to be around I would say around $3.70 - $3.75."

When the Fed meets Tuesday, they’ll also consider the new Consumer Confidence Survey that will be released later in the day. It will show us how people across the country feel about their finances and spending.

The Fed is expected to make a decision about interest rates on Wednesday.