Fed to hit pause on rate hikes, but maybe not for long
- The Federal Reserve is set to issue an interest rate decision today as persistent inflation puts pressure on policymakers. Markets place a 90% probability on the central bank holding rates steady, according to the CME Group FedWatch Tool.
- Inflation rose to a four-month high of 3.7% in September, driven by rising fuel prices amid unrest in the Middle East, according to the BLS. This rate sits more than one percentage point above the Fed's 2% target.
- Employers added 29,000 jobs in September, a sharp slowdown from the 162,000 added in August, signaling a cooling labor market. Benchmark interest rates currently stand between 3.75% and 4%.
- President Donald Trump has repeatedly criticized the Fed for raising rates, previously demanding policymakers "LOWER THE INTEREST RATES FOR THE UNITED STATES" and do so "AND FAST!" The decision arrives in a political maelstrom just before Election Day.
- Bank of America Global Research warned that holding rates risks questioning the Fed's inflation-fighting credibility, while Deutsche Bank Research suggested election timing is not a primary consideration. Markets peg the odds of a quarter-point rate hike in December at 75%.
219 Articles
219 Articles
The economic world expects the US Federal Reserve (Fed) to opt for a status quo on policy rates on Wednesday, a few days after elections in the United States largely centered on inflation that the institution is responsible for fighting.
abc 13 Houston
Federal Reserve set to issue interest rate decision as midterm elections loom
Markets expect the central bank to hold rates steady for now.
The US central bank is expected to leave interest rates unchanged tonight, even though inflation has climbed to 3.7% • This is a month and a half after the first interest rate hike since 2023 • Markets estimate that the hike could come as early as December, but some believe that a surprise is expected in this week's decision • And in the background: the US midterm elections and the dilemma of the Fed chairman whom Trump appointed
Krem2 News
Federal Reserve likely to skip rate hike despite elevated inflation as midterm elections loom
The Federal Reserve board is meeting Wednesday to determine if its benchmark interest rate should be raised. Analysts say it's likely to remain the same.
US Fed rate decision tonight: Will Kevin Warsh hold rates or signal another hike?
The Federal Reserve is expected to keep interest rates unchanged after September’s increase, but persistent inflation, elevated borrowing costs and pressure on housing and employment will put Kevin Warsh’s policy outlook under scrutiny.
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