The Fed is expected to hold interest rates steady at its October meeting
Federal Reserve policymakers are widely expected to leave their benchmark rate unchanged at 3.75%–4.00% Wednesday, six days before the midterm elections, LiveSquawk reported. Euronews cited 3.7% inflation and elevated oil prices, saying investors see a December hike as likely. The Associated Press said it is Chairman Kevin Warsh’s fourth meeting, amid questions about his independence from Donald Trump.
More context
The Fed is expected to hold rates steady Wednesday, at its final meeting before midterms six days later. LiveSquawk said the benchmark target would remain 3.75%–4.00%. LiveSquawk said persistent inflation and resilient economic activity might normally favor a hike, but signs of labor-market weakness and the approaching elections appear to have encouraged caution. Euronews pointed to 3.7% inflation and high oil prices, noting markets expect a December hike. Interest-rate futures implied less than a 10% chance of an October increase and about an 80% chance of a hike before the year's final meeting in December. The Associated Press noted that this is Kevin Warsh's fourth meeting as chair, amid questions about his independence from Donald Trump, who appointed him earlier this year.
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Reporting
- The Guardian — Fed set to hold interest rates steady in last decision before ...
- Facebook — The Federal Reserve is expected to keep... - Euronews English
- PBS News (with Associated Press) — 5 things to watch for in this week's Federal Reserve meeting | PBS News
- @LiveSquawk on X — LiveSquawk on X: "Fed Expected To Remain On Hold, Avoiding Midterms Maelstrom" / X
- fox61.com — Federal Reserve likely to skip rate hike despite elevated ...
Verifier’s note
The Guardian, LiveSquawk, Euronews, PBS carrying the Associated Press, and Fox 61 all report that the Fed is expected to hold rates steady at its meeting before the midterms. CNN discusses the possibility conditionally, while the Wall Street Journal result concerns Treasury yields rather than reporting that expectation.