Fed to hit pause on rate hikes, but maybe not for long
- Federal Reserve Chair Kevin Warsh and policymakers are widely expected to hold the federal funds rate at 3.75%–4.00% on Wednesday, October 28, 2026, with markets pricing roughly a 90% chance of a pause.
- Policymakers signaled patience while weighing upside inflation risks following September's 25-basis-point increase, allowing time to assess resilient economic data before deciding on further tightening later this year.
- Trading in fed funds futures suggests an 80% probability of a rate increase in December, as persistent inflation above the 2% target remains the central bank's primary concern.
- Warsh faces a delicate balancing act to justify the pause without signaling a lack of resolve against inflation, with midterm elections occurring days later on November 3.
- High borrowing costs continue to weigh on households, as average 30-year fixed mortgage rates remain near 7.4% and energy prices stay elevated due to the ongoing conflict in Iran.
334 Articles
334 Articles
ECB to keep rates steady amid focus on French bonds
The European Central Bank is set to keep interest rates on hold today in a well-telegraphed decision that is likely to be overshadowed by questions about bond-market turmoil in France and ECB President Christine Lagarde's own future.
European Central Bank Meetings as France's Deteriorating Public Finance Continues to Drive Questions
Most expect the ECB to keep interested rates on hold for now, having already hiked them twice this year.
In many euro countries, the economy is stagnating, protests such as those in France are putting pressure on governments. The ECB would need strong leadership - but the future of central bank head Lagarde is highly speculated by Oliver Feldforth.
The U.S. inflation exceeds the two-per-cent target of the regulator for almost six years, stated Federal Reserve Chief Kevin Worsh. "Americans continue to face inflation that has exceeded the committee's target for about six years. Our direct responsibility is to reduce it... we will achieve price stability without any "if", "and" or "but" – says Worsh. Responding to a journalist's question about why the regulator did not raise the rate at the c…
Economist ‘puzzled’ as Trump’s Fed chair holds ‘monetary medicine’ until after midterms
A prominent economist is scratching his head after President Donald Trump's Fed chair decided to sit on a move markets expect anyway.Economist Justin Wolfers said he was "a little puzzled" after the Federal Reserve held interest rates steady Wednesday, writing in his Platypus Economics newsletter that the central bank under Chair Kevin Warsh appears to be putting off a rate hike it already knows it needs.Markets see better-than-80 percent odds o…
The ECB raised its key interest rate last month, raising the deposit rate from 2.25% to 2.50%.
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