Federal Reserve likely to hold rates steady at October meeting

Summarised from 2 outlets · Updated 27 Oct, 04:38 · Archive

The Federal Reserve is expected to keep its key interest rate unchanged at its 27-28 October meeting.

The Federal Reserve is expected to keep its key interest rate unchanged when its policymakers complete their 27-28 October meeting. However, investors and economists will examine the central bank's statement closely for clues about its next policy moves and its assessment of inflation trends.

Some Wall Street investors and economists had expected the Fed to raise rates by a quarter-point to about 4.1% following higher-than-expected inflation data last month. The Fed typically raises borrowing costs to cool spending and bring down inflation.

The meeting takes place six days before midterm elections shaped by affordability concerns. Average 30-year mortgage rates have reached 7.32%, up from 6.2% a year earlier and a three-year high of 7.4% earlier this month. Oxford Economics estimates these increases have put home buying out of reach for an additional 5 million households. Further rate rises by the Fed could push mortgage rates even higher.

The meeting will be the fourth of Federal Reserve Chairman Kevin Warsh's tenure, which has drawn questions about his independence from President Donald Trump, who appointed him earlier this year.

How it is being reported

• 5 things to watch from the Federal Reserve's next meetingFederal Reserve policymakers are likely to keep their key interest rate unchanged Wednesday when they finish what may seem like an uneventful meeting.Clickorlando · 27 Oct, 03:57
• 5 things to watch from the Federal Reserve's next meetingFederal Reserve policymakers are likely to keep their key interest rate unchanged Wednesday when they finish what may seem like an uneventful meeting.News4Jax · 27 Oct, 03:57

In this story: Federal Reserve · Kevin Warsh · Donald Trump · Oxford Economics · Wall Street

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