The latest gross domestic product numbers will be released Thursday, after the Fed's decision to raise interest rates for the fourth time this year.
This report acts as a scorecard for our country's economic health. Some economists are expecting a slight growth in this morning's second-quarter GDP report, while others are predicting another decline.
Prices of goods and services have climbed to the highest rate in four decades, driven, in part, by Russia's war against Ukraine and the COVID-19 pandemic.
Investors are hoping The Fed's next interest rate increase will be smaller, while consumers and business owners are anticipating relief from inflation. Last month, the Fed raised interest rates by three-quarters of a percentage point, the largest hike since 1994.
June's inflation report showed prices were 9.1 percent higher than a year prior, the largest rise in 40 years. Fed chair Jerome Powell said his goal is to bring inflation down from 9 percent to 2 percent without sparking a recession.
On Capitol Hill, there's hope for a breakthrough deal with Sen. Joe Manchin on a budget reconciliation bill to help reduce prices while also paying down the national debt.
"The Fed has never had to face this kind of inflation battle," said ADP Research Institute Chief Economist Nela Richardson.
After The Fed announced the rate hike, Powell said he'll keep working to bring down inflation.
"We understand how painful it is, particularly for people who are living paycheck-to-paycheck, and spend most of that paycheck on necessities such as food and gas," said Powell.
Wall Street rallied Wednesday, amid investor hopes The Fed will begin to ease inflation, which could end up sparking an economic slowdown.
The Biden administration points out the declining gas prices, low unemployment, and higher wages as a good sign for the economy.
The Federal Reserve is likely not done with its rate hikes yet: Additional increases are expected later this year.