Fed Set to Hold Rates Steady as 3.7% Inflation Keeps December Hike in Play
Updated
Updated · CNBC · Oct 27
Fed Set to Hold Rates Steady as 3.7% Inflation Keeps December Hike in Play
3 articles · Updated · CNBC · Oct 27
Summary
A 10% market-implied chance of a hike this week leaves the Fed widely expected to keep rates unchanged Wednesday after September’s quarter-point increase.
September CPI at 3.7% and core inflation at 2.6% have kept pressure on policymakers, with investors watching whether Chair Kevin Warsh signals more tightening without reviving explicit forward guidance.
Fed funds futures now price better than an 80% probability of a December increase, while some officials’ recent comments have pointed to hikes at every other meeting.
That path risks adding strain to housing, where mortgage rates are above 7%, and to a labor market marked by low layoffs but weak hiring, sharpening concern about a policy mistake.