An Economic Balancing Act that is getting harder to pull off.

From Marketplace, I'm Sabrina Benicure, in for David Brunkaccio.

At the top of this economy sits a giant brake pedal and a giant gas pedal, and the Federal

Reserve starts a two-day meeting today to decide what to do with them.

We're talking about interest rates.

Lower rates are economic gas, higher rates are economic brakes, the Fed is trying to put

the brakes on just enough to bring inflation down without causing a recession that is

getting more complicated because the economy is facing some headwinds that are outside

of the Fed's control.

Marketplace's Nancy Marshall-Genzer has more.

Just look at what consumers are facing right now.

Gas prices averaging about $3.80 a gallon, according to AAA.

Elizabeth Renter is a data analyst at Nerdwallet.

There is a strong correlation between what's going on at the pump and how people feel

about the economy.

Renter says if they feel like inflation is getting out of hand, they might spend less.

Other consumers are losing income, picketing united auto workers get strike pay, but it's

usually less than their regular check.

And nearly a million Federal workers could be furloughed without pay if there's a government

shutdown, according to Oxford Economics lead U.S. economist Nancy Van Denhouten.

They will have to cut back on their spending.

She says even more consumers will cut back next month when student loan repayments start

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