The Federal Reserve is expected to keep benchmark interest rates unchanged this month, citing inflation concerns and a desire to avoid influencing the upcoming midterm elections.
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Economists and Wall Street analysts predict the Federal Reserve will keep its benchmark rate unchanged at 3.75%‑4% as September inflation data shows mixed pressures.
The Labor Department reported a 1.3% rise in the September Producer Price Index, the strongest monthly gain since March 2022, as energy costs surge and core inflation pressures mount.
Fed Chair Kevin Warsh said the central bank will not give forward guidance on upcoming hikes, noting a worldwide wave of tighter policy and warning that there are “no free riders.”
U.S. stock futures were flat Thursday after Treasury yields surged to their highest levels in nearly two decades, prompting a broader market sell‑off and heightened expectations of another Fed rate hike.
The Federal Reserve’s first rate increase since July 2023 is pushing the dollar higher, tightening Asian currencies and lifting bond yields worldwide.
The Federal Reserve is expected to lift its benchmark rate by a quarter point on Sept. 16, the first hike since July 2023, as stubborn inflation and high energy costs linger.
The 10-year Treasury yield rose to 5.025%, its highest level since 2007, as markets price a more than 92% chance of a Fed rate hike amid stubborn inflation and firm oil prices.
President Trump and senior officials have intensified public pressure on the Federal Reserve to keep rates low as a September meeting looms, threatening trade actions and urging cuts.
A surprise drop of 23,000 jobs and revised hiring figures pushed the market’s view of a September rate hike to a 56% chance of a hold, while economists remain divided on future moves.