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Fed to hit pause on rate hikes, but maybe not for long

Reuters poll shows all 100 economists expect a December hike, while 94 of 100 see the Fed holding rates this week.

  • A Reuters poll of 100 economists published on Wednesday, October 21, 2026, shows the Federal Reserve will skip an interest rate hike at its October 27-28 meeting, with a December increase now expected.
  • Policymakers signal patience as stubborn inflation persists, though the economy shows resilience driven by AI-driven investment, according to US economist at UBS Abigail Watt.
  • Traders price in an 84 per cent chance of a pause next week according to the CME FedWatch Tool, while nearly 60% of forecasters expect rates to peak in a 4.00%-4.25% range.
  • Mizuho Securities senior US economist Alex Pelle called the October pause the "wrong call from a policy point of view," warning the risk of a 50 basis point December hike exceeds no action.
  • The Personal Consumption Expenditures inflation gauge is expected to remain above 2% until at least 2028, while annual growth forecasts of 2.3% this year suggest persistent policy challenges ahead.
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Lean Right

Fed faces challenging policy meeting as rising energy prices fuel inflation and complicate its next move, while Fed Chair Kevin Warsh's cautious statements reinforce expectations of no rate change this week, though experts remain divided

·Ankara, Türkiye
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  • 45% of the sources lean Right
45% Right

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Southeast AgNET broke the news on Tuesday, October 20, 2026.
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