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Federal Reserve Set to Issue Interest Rate Decision as Midterm Elections Loom
Markets see a 90% chance the Fed holds rates steady as inflation rises 3.7% and a December hike remains likely, CME Group FedWatch shows.
- 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%.
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17 Articles
abc 13 Houston+13 Reposted by 13 other sources
Federal Reserve set to issue interest rate decision as midterm elections loom
Markets expect the central bank to hold rates steady for now.
·Houston, United States
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Federal Reserve set to issue interest rate decision as midterm elections loom - The Pulse of NH
Getty Images / Stock PhotoThe Federal Reserve is set to issue an interest rate decision on Wednesday as a surge of inflation puts pressure on central bankers to raise rates days before the midterm elections.An acceleration of price increases this year ...
Coverage Details
Total News Sources17
Leaning Left2Leaning Right0Center10Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
L 17%
C 83%
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