Fed expected to hold rates steady in last meeting before US midterms
Briefing by News4U · First published
The US Federal Reserve is expected to leave interest rates unchanged on Wednesday after last month’s first hike since 2023, as September inflation rose to 3.7% ahead of the midterms, The Guardian reported.
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, The Guardian reported. [1]
Last month, Fed officials raised rates for the first time since 2023, citing rising inflation. Though inflation rose higher in September, going from 3.4% in August to 3.7%, a pause would signal the central bank is taking a wait-and-see approach ahead of the midterms next week. [1]
Multiple Fed leaders have suggested in recent weeks that the central bank has room for a pause. Fed governor Christopher Waller said the hikes do not need to come at consecutive meetings. NYU Stern professor Nicholas Economides said the proximity of the election makes radical action less likely. [1]
Sources
- Fed set to hold interest rates steady in last decision before midterms
The Guardian Business · · Full text