Fed to hit pause on rate hikes, but maybe not for long
- The Federal Reserve will conclude its two-day meeting on Wednesday, with members widely expected to maintain the target interest rate range at 3.75% to 4%.
- Persistently high inflation continues to challenge the central bank as energy costs remain elevated due to the ongoing war in Iran, with September inflation rising to 3.7% from 3.4%.
- CME Group's FedWatch tool shows a roughly 90% probability of a rate pause, reflecting official efforts to avoid political optics just six days before Election Day.
- Two-Thirds of Americans describe soaring fuel prices triggered by the conflict as a serious problem, and voters report significant economic strain ahead of the midterm elections.
- Although rates will likely hold this week, the Federal Reserve has not ruled out future hikes this year, with officials scheduled to reassess the economy in December.
156 Articles
156 Articles
Federal Reserve expected to hold interest rates steady in last decision before midterm elections
Federal Reserve interest rate decision comes less than a week before midterm elections. Inflation remains high after September CPI data, but the Fed is expected to hold rates steady.
What to expect from the Federal Reserve's next rate decision
The Federal Reserve is expected to keep interest rates on hold on Wednesday, six days before the US midterm elections, but with inflation at 3.7% and oil prices still elevated, investors see another hike in December as likely and will scour Chair Kevin Warsh's words for clues.
Although stubborn inflation could justify another rate hike, the Fed is expected to leave the target range of 3.75-4 percent unchanged at its meeting on Wednesday. Annual inflation accelerated to 3.7 percent in September, and price pressures are also being amplified by rising fuel prices due to the Iran war and investments related to artificial intelligence. The market is nevertheless pricing in a nearly 90 percent chance of keeping rates on hol…
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