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Fed to hit pause on rate hikes, but maybe not for long
Traders see a 90% chance of a hold, but economists say hotter inflation and stronger growth could force the Fed back to hikes soon.
- Federal Reserve policymakers, led by Chairman Kevin Warsh, convene October 27–28 to decide on interest rates, with expectations widespread they will maintain the current target range of 3.75% to 4.00%.
- Persistent inflation and hotter-than-expected economic data prompted this pause, following September's quarter-point hike that lifted the target range as officials signaled inflation remained elevated.
- Data from the CME FedWatch Tool shows a 90% probability of a hold, a decision observers suggest helps officials avoid political friction ahead of November 3 midterm elections.
- Futures markets currently price a 74% chance of a 25-basis-point increase in December, reflecting consensus that policymakers will prioritize this pause before resuming tightening to combat persistent inflation.
- Warsh faces intense scrutiny regarding his communication strategy, as investors monitor his post-meeting press conference for clues on his commitment to the 2% inflation target.
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131 Articles
The Toronto Star+4 Reposted by 4 other sources
5 things to watch from the Federal Reserve’s next meeting
WASHINGTON (AP) — Federal Reserve policymakers are likely to keep their key interest rate unchanged Wednesday when they finish what may seem like an uneventful meeting. But investors and economists will be looking between the lines of the central bank's…
·Toronto, Canada
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5 things to watch from the Federal Reserve’s next meeting – WTOP News
WASHINGTON (AP) — Federal Reserve policymakers are likely to keep their key interest rate unchanged Wednesday when they finish what may seem like an uneventful meeting. But investors and economists will be looking between the lines of the central bank’s statement Wednesday for clues about its next moves and where it thinks inflation is headed....
·Chevy Chase, United States
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Coverage Details
Total News Sources131
Leaning Left8Leaning Right19Center30Last UpdatedBias Distribution53% Center
Bias Distribution
- 53% of the sources are Center
53% Center
14%
C 53%
R 33%
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