Fed meeting live updates: No hike expected, but investors watching Warsh for what's next
Markets are pricing in less than a 10% chance that the FOMC follows up its quarter--point hike in September with another increase.
TL;DR
- Markets anticipate the Federal Reserve will hold interest rates steady, with less than a 10% chance of a hike.
- The benchmark interest rate is expected to remain between 3.75% and 4%.
- Investor focus will be on Fed Chairman Kevin Warsh's post-meeting news conference for policy clues.
- Traders expect a rate hike in December, following the October pause.
- Inflation data, including CPI and PPI, indicates reacceleration, with CPI above 3.7%.
- Some regional Fed presidents (Hammack, Logan, Kashkari) might dissent from a hold decision.
- The decision comes shortly before the midterm elections, raising speculation about political influence.