Fed meeting, bank CEOs on the hill and more: The 5 things to know from Wednesday

These are the main events taking place on Wednesday that may affect trade.

THE FED: The central bank is expected to raise interest rates in the afternoon after its last policy meeting.

It is expected to raise its key short-term interest rate sharply – likely to announce a third consecutive three-quarter point hike – its past rate hikes are being felt by households across the economy.

The Fed’s latest move is expected to raise benchmark rates to a range of 3% to 3.25%, the highest level in 14 years.

FED WILL LIKELY TO DELIVER MORE ECONOMIC ‘PAIN’ WITH ANOTHER SIGNIFICANT INTEREST RISE

Fed Chair Jerome Powell and Federal Reserve Building (Photo Credit: Getty Images/iStock/Getty Images)

The steady rate hikes are making it increasingly expensive for consumers and businesses to borrow — for homes, cars, and other purchases. And there are almost certainly more walks to come. Fed officials are expected to indicate Wednesday that their benchmark interest rate could rise to 4.5% early next year.

BIG BANK CEOs ARRIVE BIG QUESTIONS ABOUT CAPITOL HILL

BANK CEOs: The chief executives of America’s largest retail banks will appear before Congress this week in two separate hearings, where lawmakers are expected to question the financial titans over lending practices and a range of social issues such as climate change and workers’ access to abortion.

Jamie Dimon from JPMorgan, Brian Moynihan of the Bank of America, Jane Fraser of Citi, Charles Scharf of Wells Fargo, Andy Cecere of the American Bancorp, William Demchak of PNC Financial Services, and William Rogers Jr. of Truist Financial will appear before the House Committee on Financial Services headed by D-California Chair Maxine Waters on Wednesday. The same witnesses will virtually testify before the Senate Banking Committee headed by D-Ohio Chair Sherrod Brown on Thursday.

Stitch repair

The Stitch Fix logo on a smartphone in Hastings-on-Hudson, New York. (Photographer: Tiffany Hagler-Geard/Bloomberg via Getty Images/Getty Images)

STITCH FIX: Shares fell more than 2% during extended trading after the online personal styling service missed Wall Street’s revenue and earnings estimates.

Fourth quarter fiscal net income was down 16% to $481.9 million. Analysts had expected $489.0 million. Active customers fell 9% to 3,795,000.

Net loss for the three months ended July 30 was $96.3 million, compared to net income of $21.5 million a year ago.

Per share, the net loss was 89 cents, ahead of the expected 63 cents.

Net sales for the current quarter are expected to decline 22% to 20% year over year to $455 million – $465 million.

EXISTING HOME SALE: The National Association of Realtors is expected to say that sales of previously owned homes fell 2.3% in August to a seasonally adjusted annual rate of 4.70 million units. That would be the seventh consecutive monthly decline, the most consecutive decline since the housing market collapse in October 2007.

It would also mark a 27.6% drop from January when sales buzzed at an annual rate of 6.49 million.

Oil storage tanks

Storage tanks are on display at Marathon Petroleum’s Los Angeles Refinery. (REUTERS/Bing Guan/Reuters Photos)

ENERGY INVENTORIES: The DOE’s Energy Information Administration will release its inventory report for last week. Crude inventories are expected to increase by nearly 2.2 million barrels, following a more-than-expected production of more than 2.4 million barrels the previous week.

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Look out for a build of 420,000 barrels of distillate stocks (heating oil, diesel fuel) and a draw of over 400,000 barrels of gasoline stocks.