US Federal Reserve expected to hold rates steady as inflation swirls
Markets expect the Federal Reserve to keep rates at 3.50% to 3.75% as inflation stays above target and oil prices jump.
- The Federal Reserve begins a two-day meeting on Tuesday, with markets expecting policymakers to hold interest rates steady at 3.50 per cent to 3.75 per cent for the fifth consecutive meeting. Chairman Kevin Warsh leads the committee amid persistent inflation concerns.
- Oil futures have breached US$100 per barrel for the first time since late May, driven by Middle East conflict, while President Donald Trump's intensified regional hostilities complicate the Fed's efforts to curb 3.5 percent year-on-year inflation.
- Fed Governor Chris Waller warned last week that the Fed "has to be ready to tighten monetary policy to prevent a repeat of the 2021-to-2022 inflation episode." He added, "Sternly staring at inflation until it melts before our withering gaze is not an option."
- CME Group's FedWatch tool indicates a 90% probability that the fed funds rate will rise by year-end, as policymakers signal interest rates will likely remain elevated rather than falling anytime soon.
- While the S&P 500 has climbed 10% this year, the committee must balance economic pressures from the AI boom and Trump's tariffs against its dual mandate to maintain price stability and support employment.
11 Articles
11 Articles
US Federal Reserve expected to hold rates steady as inflation swirls
Warsh was chosen to lead the US central bank by Trump, who has made his demand for lower interest rates clear as he has exerted unprecedented pressure on the independent monetary policy making body. After two days of closed-door sessions, the Fed's open market committee (FOMC) will announce its decision on Wednesday at 2:00 pm (1800 GMT), followed by a press conference by Warsh. Most investors expect the Fed to hold rates steady at 3.50-3.75 per…
Analysts agree that the US Federal Reserve (Fed) will not change interest rates at its Wednesday meeting in the face of improved inflation and employment data, although the US issuing institute will remain alert in a context marked by the uncertainty of the situation in the Middle East, with the price of oil reaching peaks of the last two months. The Federal Open Market Committee (FOMC) of the Fed unanimously decided to maintain the reference ra…
US Fed Likely to Hold Rates as Inflation Swirls
The US Federal Reserve has begun its second policy meeting under new chairman Kevin Warsh, with investors expecting the central bank to keep interest rates unchanged as inflation pressures and rising energy costs continue to weigh on the outlook. The Federal Open Market Committee (FOMC) is scheduled to announce its decision on Wednesday at 2:00 pm (1800 GMT), after two days of closed-door discussions. Warsh will later address reporters at a pres…
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- 43% of the sources are Center, 43% of the sources lean Right
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