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Fed to hit pause on rate hikes, but maybe not for long
Rate futures show a 90% probability of a policy hold, reflecting official concerns regarding Treasury yields despite ongoing inflation and accelerated economic growth.
- The Federal Reserve is expected to hold short-term borrowing costs steady in the 3.75%-4.00% range at its October 27-28 meeting, pausing rate hikes despite persistent inflation concerns.
- Influential policymakers were "spooked" by a recent surge in 10-year Treasury yields to near-quarter-century highs, prompting officials to signal the Fed is content to wait for more data before further tightening policy.
- Nationwide Chief Economist Kathy Bostjancic argued "the data, in my opinion, do support a rate hike," while economists project September inflation accelerated to 3.6% from 3.4% amid higher gas prices and broader pressures.
- Fed Chairman Kevin Warsh faces a delicate challenge explaining the hold without damaging the central bank's credibility, especially as the looming November 3 election complicates the political landscape surrounding the decision.
- BMO Chief Economist Scott Anderson expects "at least one dissent" from hawkish officials at the meeting and predicts two further rate hikes are necessary to bring inflation down to the 2% target.
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7 Articles
7 Articles
Fed to hit pause on rate hikes, but maybe not for long
Federal Reserve policymakers have telegraphed they will not raise US short-term borrowing costs again this week, but with inflation concerns still front and center, investors believe a rate-hike pause will not last for long.
·London, United Kingdom
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Coverage Details
Total News Sources7
Leaning Left0Leaning Right1Center5Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
C 83%
R 17%
Factuality
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