Fed Seen Holding Rates—But Hike Isn’t Off the Table
TL;DR
With inflation cooling only modestly and oil prices rising on Middle East tensions, the Federal Reserve is expected to hold rates at its upcoming meeting, though a 25-basis-point hike remains possible this year. Futures assign roughly a 37% chance of a move, reflecting a split among officials: some, like Loretta Mester and Lorie Logan, favor holding unless inflation proves stickier, while others including Kevin Warsh signal a potential move if inflation stays above target. The decision will hinge on inflation trends versus energy-cost volatility and how trading markets price in the risk of higher rates.
- Fed expected to hold rates steady — but an interest rate hike isn't off the table Yahoo Finance
- Fed Faces Growing Pressure to Hike Rates as Price Risks Rebound Bloomberg.com
- Will the Fed raise interest rates at Kevin Warsh’s second meeting? Financial Times
- Odds of Federal Reserve rate hike surge as oil prices rip higher CNBC
- The Fed Is Heading Into One of Its Most Unpredictable Meetings in Years WSJ
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