Federal Reserve expected to hold rates steady ahead of midterms

Summarised from 2 outlets · Updated 28 Oct, 10:20 · Archive

The Federal Reserve is expected to leave interest rates unchanged at its October meeting on Wednesday, maintaining rates in the range of 3.75% to 4%. Last month, the central bank raised rates by 25 basis points for the first time since 2023, citing rising inflation as its concern.

Inflation reached 3.7% annually in September, up from 3.4% in August, and remains above the Fed's 2% target. Higher energy costs stemming from surging oil prices add further pressure on household budgets and complicate the inflation outlook. Nearly 75% of observers expect at least one more rate hike by year-end, though less than 10% expect it this week.

Fed leaders including governor Christopher Waller have signalled the central bank has room to pause between rate rises. Heather Long, chief economist at Navy Federal Credit Union, noted that inflation remains the central problem in the US economy but suggested the Fed would not raise rates now given the proximity of next week's midterm elections. Nicholas Economides, professor of economics at NYU Stern Business School, observed that the central bank is unlikely to take radical action shortly before an election.

How it is being reported

• Fed set to hold interest rates steady in last decision before midtermsUS central bank last month raised rates for first time since 2023, in move that infuriated Donald Trump The US Federal Reserve is expected to leave interest rates unchanged on Wednesday during its last rate-setting meeting before the midterm elections, keeping rates at one of the highest pre-election levels seen in over 20 years. Last month, Fed officials raised rates for the first time since 2023, citing rising inflation. Inflation has hovered for years above the Fed’s target rate of 2%, and for most of this year, the annualized inflation rate has remained above 3%. Continue reading...Guardian World · 28 Oct, 10:00
• Federal Reserve is likely to hold interest rates steady in October. Here's what that means for consumersThe Federal Reserve is expected to keep its overnight rate unchanged at the conclusion of its October meeting this week.CNBC · 26 Oct, 16:03

In this story: Federal Reserve · United States · Heather Long · Christopher Waller · Nicholas Economides

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log