Here's how to prepare for the expected federal interest rate increase

LYNCHBURG, Va. (WSET) — The Federal Reserve is expected to raise interest rates, which may impact how you spend.

The Fed is under pressure to raise interest rates and they are set to raise the cost of borrowing.

Nancy Hubbard, Dean of the College of Business at the University of Lynchburg said it could go up to three-quarters of a point to a full point.

From the check-out line at the grocery store to the pumps at the gas station, consumers are feeling the inflation squeeze.

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"The month of May and June we've served 15,000 meals each month," Jennifer McCarthy, resource coordinator with Lynchburg Daily Bread, said.

McCarthy said they are the busiest they have been in four years.

"Now we're just pouring food out as quickly as we can and prepping in real-time," she said.

Right now, inflation is at a four-decade high at 9.1 percent. The Fed should make the announcement to increase interest rates by Wednesday.

"The move to increase interest rates is a design to try to slow down inflation," said Hubbard.

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She said it's an attempt to slow down the economy.

"So that we have a soft landing rather than a hard landing if the economy overheats," she added.

But a hike will make borrowing costlier, so Hubbard said you'll see higher mortgage, student loan and credit card rates.

"You're going to see some costs passed down to the consumer because businesses are going to be operating at a high cost base as well," she said.

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Her advice to you is to lock it in.

"What would I tell any consumer now is lock into any variable interest rates you have," she said,

She says if you're making a $200 car payment - for example - lock it in.

If you have student loans - now is the time to consolidate and refinance that money.

If you want to buy a house - lock in the mortgage rate because she said they'll be going up in the next six months.