Fed meeting live updates: Federal Reserve weighs elevated inflation, midterm elections as October meeting kicks off
The Federal Reserve kicked off its two-day policy meeting on Tuesday as elevated inflation continues to pose a problem for central bankers who nevertheless seem reluctant to hike rates this month.
Fed watchers expect the central bank to keep benchmark rates in the 3.75% to 4% range, with bond traders pricing in a less than 10% chance of a hike on Wednesday, per CME Group. A rate hike in December appears far more likely, however, according to the Fed’s dot plot and fed funds futures.
Although recent inflation data came in hotter than expected, several officials’ remarks suggest the Fed will hold rates this month to continue assessing additional data. The proximity of the October meeting to the US midterm elections next Tuesday is also seen as a deterrent to bold monetary policy moves.
With the Fed holding rates steady seen as all but given, the focus is on what Fed Chairman Kevin Warsh will say at his post-FOMC-meeting press conference. Warsh has deliberately avoided telegraphing future Fed policy moves, but hot inflation could elicit more insight from him into the path forward.
